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MINISTRY OF ENERGY AND MINES ALGERIA. Structural Reforms : Mining, Hydrocarbons and Electricity Sectors. H.E Dr. Chakib KHELIL Minister of Energy and Mines. BRUSSELS, 26 th APRIL 2002. Government Objectives. Optimize and Diversify State Revenues Create Employment
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MINISTRY OF ENERGY AND MINES ALGERIA Structural Reforms : Mining, Hydrocarbons and Electricity Sectors H.E Dr. Chakib KHELIL Minister of Energy and Mines BRUSSELS, 26th APRIL 2002
Government Objectives Optimize and Diversify State Revenues Create Employment • Introduce competition Attract National and International Investors 1
Actions Program (1) Séparate State and Commercial Roles Create Legal and Institutional Frame work • Open and Competitive Market Economy Strong Regulatory Institutions 2
Actions Program (2) Regulate Natural Monopoly No State Garantees(Finances) New Procedures to Grant Contrats 3
Actions program (3) Concession Transport/Storage Facilities ATR Transport/ Storage Facilities Amendments Law/Rules/Companies Statutes : Mining/ Hydrocarbons/ Electricity 4
Legal Framework : Mining law Develop Mining Potentiel Increase Revenues Create Jobs • Incentives : No discrimination between investors Access to information Title Rights Transfer Fiscal System Stability 5
Legal Framework : Electricity law Attract Private Investments Introduction of Competition State Responsible for Public Service Suppression of Monopoly Export of Electricity 6
Legal Framework : Hydrocarbons law Attract Investments Increase State Revenues Separate Roles of State and NOC Strengthen Sonatrach 7
Creation of Regulatory Entities Mining Investment Promotion Regulations Enforcement Hydrocarbons Investment Promotion Regulations Enforcement Electricity Electricity and Gas Distribution(CREG) 8
Comparative Advantages of Algeria Associate Member of European Union Natural and Human resources Strategic Position Emerging Democracy Well Advanced Reforms Rich Portfolio of Projects Economic Ties with Europe 9
Investment in Electricity Sector 2000-2010 Investment (Billions US $99) 12.2 Production of Electricity 5.4 Transport of Gas and Electricity 3.7 Distribution of Gas and Electricity 3.1 10
Algerian Energy Company-AEC-(1) AEC (50%SONATRACH/ 50% SONELGAZ) Energy Production/Transport/Distribution Energy trading in Algeria and Abroad, Sea Water Desalination and Electricity Export Participation in Overseas Projects 11
A E C (2) • Project 2000MW : • • 2000MW (1200 for export) • • Direct Submarine Electrical Connection • Algeria-Spain (Red Electrica) • Estimated Cost : 1.5 billion US$ Potential Export to Italy • Direct Electrical Connection (GRTN). 12
A E C(3) • SEA WATER DESALINATION • • Arzew project (88000 m3 /d coupled with 300MW(AEC 20%/ Black and Veatch Africa 80%) • • Algiers(Hamma)project(50 000 m3 /d) combined with Existing 420 MW Power Plant 13
Investment in Hydrocarbons Sector2002-2006 Investment (billions US $)22 Upstream 15 Pipeline Transport 2 Downstream 5 14
ALGERIA-SPAIN GAS PIPE • Description • • Capacity : 8 Billions Cm/y • • Diameter : 48 " / 24" • • Length : 200km (2200 m depth ) 15
Algeria -Italy via Sardaigna Gas Pipe • Description • • Capacity : 8 Billions Cm/y • • Diameter : 48 " / 24 " /42 " / 22 " • • Length : 310 km (2150 depth) Algeria-Sardaigna 16
Nigeria-Niger-Algeria Gas Pipe • Description • • Diameter : 56 " • • Length : 3773 kms • Advantages • • Telcom.Systems(countries/Link to Lagos-S.Africa) • • Transaharian road 17