english issue
The Algerian
characteristic
In these times of economic
“redeployment” and budget deficit
related to a drastic fall of the oil
revenue, helium could offer an
output alternative. First, because
the helium gas fields exist and the
Algerian reserves are deemed as
second on the world scale. Then,
if helium is not extracted from our
natural liquefied gas fields, it is
lost. This represents a waste. At
the same time, two difficulties arise
in the energy sector: penetrate the
market of helium and find a buyer,
then allow that the production of
helium is profitable. Sold at two
or three dollars for m3, Algeria
had not fought much to recover
the helium from its natural gas.
The prices, compared to those of
other products or resources do not
encourage making investment.
In addition, the reduction of the
European gas consumption had
not encouraged the investors.
But they turned their nose up at
the future. Because in spite of
the absence of helium shortage
today, the indicators show that
in spite of developments and
searches, the risk is not completely
excluded. And the new measures
taken toward Qatar could offer to
Algeria a new window, in addition
to a growing demand coming from
emerging countries like China and
India.
Sonatrach and
Helium
On a side note, different joint-
ventures had come out in Algeria.
An association with German LINDE
for the marketing of helium did
not have the expected results in
Skikda. As for Helios company,
another JV in Arzew, it seems
that the added value escaped
Sonatrach. All the attempts or
setting up of JV with Linde, Air
Liquid, for the French part or
with Air Product for the American
part did not have the expected
impact. It is in Qatar that the
foreign investments bore their
fruit. Indeed, Air Liquid built in
2013 a giant unit fast-tracking the
country into the second position of
helium producer in the world. The
Russians also have ambitions in
the recovery of helium from their
natural gas. Great infrastructures
were created and it is question
of extending the production to
Eastern Siberia, giving more
opportunity to Russians to
penetrate the market. A discovery
was made in Tanzania, where a
giant helium field came out. Not
less than 10% of helium were
discovered in gas pockets near
volcanoes. The field represents
at least 1.5 billion m3. A record
to which it is added that this field
coming from a volcanic activity will
not be subject to the gas market,
which is the case for the other
helium fields which are in fact
extracted from LNG.
Although the American fields are
growing old and that their stocks
are reduced, the United States
intend to preserve their place of
leader on a market witnessing a
little competition. The Japanese,
Chinese, Indian and European
demand does not diminish enabling
to prognosticate difficulties of
meeting the needs. New actors
as Russia will try to impose their
offer, but it is not too late for
Algeria to pose its cards, since the
fields exist.
O I L & G A S b u si n e ss / NU M É R O 2 7 / j u i l l e t - a o û t 2 0 1 7 / 5 5