Wintershall Dea expands interest in Algerian Reggane Nord gas project

ALGERIA – Wintershall Dea has agreed to acquire an additional 11.25% participating interest in the Reggane Nord natural gas project, in Algeria, from Edison International for an undisclosed sum.

After the transaction is closed, the consortium Groupement Reggane Nord (GRN), operator of the project, will comprise Sonatrach (40%), Wintershall Dea (30.75%), and Repsol (29.25%).

The company currently holds a 19.5% share in the concession and in 2020 signed a 2-year term memorandum of understanding with Sonatrach aimed at strengthening cooperation in the country.

Reggane Nord comprises six gas fields (Azrafil Sud-Est, Kahlouche, Kahlouche Sud, Tiouliline, Sali, and Reggane) over a 1,800 sq km area in the Sahara Desert of southwestern Algeria.

The project’s central processing facilities include a gas treatment plant, a gathering network, and a 74-km pipeline connecting the treatment plant to a new transmission line.

GRN marked the first gas in 2017 and the project is expected to be in production until at least 2041.

Operating in Algeria since 2002, the company’s expansion plans are aimed at taking advantage of the North African country’s enormous potential for gas and oil production.

Algeria holds great potential for natural gas production and future energy projects,” said Dawn Summers, Chief Operating Officer and responsible board member for the Middle East and North Africa.

That is why we want to grow our presence in Algeria and contribute to the development of its energy sector. Increasing our interest in the Reggane Nord project is the first step.”

The company aims to continue producing low-cost natural gas and to secure long-term energy supply in Algeria and the region.

Algeria is the third-largest exporter of gas to Europe, after Russia and Norway; and is the largest natural gas producer in Africa.

The country is a prime candidate for an enhanced energy partnership with Europe, particularly at this critical time.

Located just across the Mediterranean, the country has well-developed infrastructure connections to Europe.

These include two subsea gas pipelines and LNG facilities at two locations. In the long term, the country has major potential for climate-friendly hydrogen, solar and wind power, and carbon capture and storage.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s business, economy, and more. SUBSCRIBE HERE

Other Recent Posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.