Title : ENVIRONMENTAL ASPECTS OF GAS PROJECTS Last Name: NAIT ALI First Name: NADIA Organization: Sonatrach Key Words: Pipeline, environment protection, projects. 1. Introduction Today, Algeria lives a new phase of its modernisation by adopting legislation related to opening the gas and electricity markets. As the matter of fact, Sonatrach's company undertook strategies in order to update its gas project engineering's process . As the Algerian's natural gas export towards high energy consuming countries increases, Sonatrach’s company will plays an important role in environment protection at a worldwide level. Since, natural gas pollutes less than petroleum and petroleum and coil and rejects less Carbon dioxide in the atmosphere. In Sardinia for example by using the Galsi pipeline, the substitution of coil by natural gas introduced interesting social and economical effects whilst preserving environment. Algeria ranks fifth on the global market of natural gas exporters, and second for LNG, which makes Algeria Europe's primary partner for energy. Algeria meets 12% of the total demand from Europe and is one of the four main natural gas exporters with Russia, Norway and the Netherlands. In Algeria significant oil and gas infrastructures exist, next door to Europe, as a testimony of the close relationship it maintains with your countries: the Enrico Mattei Trans-Mediterranean Gas Pipe, the Pedro Durran Farrel Maghreb-Europe gas pipe, LNG units as well as a whole fleet of LNG carriers. Algeria, thanks to its geographical location and its huge gas reserves, has set as its objective to increase production and exports capacity in order to meet the growing needs of its European neighbors. 2. EXPORTS BY PIPELINES SONATRACH started building huge transportation pipeline projects that are the two gas pipes connecting Algeria to Europe: The Enrico Mattei Gas Pipe from Hassi R'mel to Italy via Tunisia and the Pedro Durran Farrel Gas Pipe from Hassi R'mel to Spain via Morocco. The construction of important gas infrastructures and LNG units, the development of gas fields, the setting up of gas pipelines, the cost of LNG carriers require huge amounts of capital investments with their inherent financial risks and 95% of our exports are bound to Europe. 2.1 Enrico Mattei GAS PIPELINE • Designed and realized to meet the fast growing Italian market supply and deposits promotion objectives. • Its current capacity is estimated at 26 billion m3. It is planed to reach 32 billion m3, in the mid-term. • The infrastructure is known to be reliable. It supplies Italy , Tunisia and Slovenia . • In the framework of extension of the first phase, scheduled for 2008, Sonatrach has concluded 04 gas sale purchase agreements with Italian companies. • Sonatrach strengthens its leading position as a major supplier of the Italian market the agreements concluded reflect Sonatrach and its partners will in their endeavour aiming at meeting the growing gas demand. 2.2 ‘’Pedro Duran Farell ’’ GAS PIPELINE • Designed and realized to transport gas from Algeria to Spain its main characteristic is the promotion of the Algerian gas. • The first gas was in 1996. the transported volumes increase every year. • Its initial capacity estimated at 8.5 billion m3/year has increased by 2004 to reach 11.5 billion m3. • The pipelines supplies Spain and Portugal via Morocco . 3. INTERNATIONAL GAS PROJECTS The outcome has been a significant increase of Algerian gas in European market and its share of energy supply: 88% for Portugal, 64% for Spain, 38% for Italy, 24% for France, 26% for Greece to name a few pursuant to this policy, and taking into account the promising; prospects of European gas market, Sonatrach, while engaging in huge investments, has publicly made known its strategy: that of a reliable and regular gas supplier. Investments were made to increase the export's capacity from 25 billion cubic meters (Bcm) to 85 Bcm in the year 2010. Natural gas demand from European Union countries will be more than 900 Bcm in 2030. To achieve this objective, a number of projects are in the pipeline or understudy phase to increase export capacity or to build new infrastructures in order to enhance the security of supplies to the European Union. To deal with the legitimate concerns of the EU, related to the elimination of risks inherent to supply, and in order to ensure sustainable, reliable, diversified sources of energy, we consider that consensus based approaches should be adopted between consumers, producers and exporters, since in 2020, Europe will have to import two thirds of its gas consumption. The gas companies, financial institutions, highlighted the need for long term contracts, given their major role in ensuring the security. of supply and the proper functioning of natural gas markets. To achieve this objective, a number of projects are in the pipeline or understudy phase to increase export capacity or to build new infrastructures in order to enhance the security of supplies to the European Union. The main international gas projects of Sontatrach are: 3.1 MEDGAZ project (Algiers-Europe via Spain) • MEDGAZ project will supply Spain and other European countries with natural gas through the pipeline linking Beni-Saf to Almeria. • Being in an advanced stage, Medgaz offers Sonatrach an opportunity aiming at realizing and reacting the objectives out lined in the business plan. 3.2 Galsi project (Algiers-Italy) • The Galsi Project will contribute to the reinforcement of Sonatrach marketing strategy, taming at exporting 85 billion m3 by 2010. • • The project is likely to enhance Europe gas supply security. It is a new direct route witch will supply Sardinia, directly. • With a capacity of 8 billion m3/year, the Algeria –Italy via Sardinia pipeline will start in Hassi R’mel to El kala, their the south and the north of Sardinia. • Galsi pipeline will supply Italy, and even south France as well as north Alps countries. 3.3 TSGP project (trans-Saharan pipeline) joining on 4000 Km Abudja in Nigeria to the coast Algerian. • The Trans-Saharan gas pipeline links the Nigerian fields to Europe via Niger and Algeria. • The pipeline will ensure the African west regions supply. It can also supply south Europe by coming along on the existing Algerian network. • This significant infrastructure will allow the evacuation of 18 to 25 billion m3/year of natural gas. These three projects with undeniable geo-strategy impact are in compliance with the targeted objectives laid down: • in the Euro-Mediterranean partnership following Barcelona summit • following the new sustainable development initiative for Africa • following the agreement signed between Algeria and the European Union All these projects contribute in effective procurement and in the diversity of the energy in Europe, in integrating the Algerian gas network into the Maghreb and European networks, in environment protection and in access to competitive sources of energies. If Algeria is one of the main suppliers of natural gas, is because it matched all the stages of evolution of the gas market. 4. ENVIRONMENTAL ASPECTS OF Projects : • The natural gas will allow converting the European electrical fuel or coal generators to natural gas generators. • The quantities of gas currently burned by the torch will have a double environmental advantages: • Reduce the impact of the torched gases in Nigeria • Provide a clean source of energy to Europe in order to reduce the CO2 in the atmosphere. 5. ORGANIZATION INTO A HIERARCHY OF SIGNIFICANT ENVIRONMENTAL ASPECTS AND IMPACTS - The environmental aspects are resumed in all projects. Then, they will be organized into a hierarchy. - Therefore, the result will be a list of significant environmental aspects that the Group Sonatrach will spare no effort to improve. 6. ENVIRONMENTAL PROTECTION A PERMANENT CONCERN All these projects will contribute, efficiently, in Europe energy supply and diversification, aiming at participating in world effort in protecting the ozone layer and natural resources exploitation. Despite the increase of production, Sonatrach works for eliminating and reducing gas flaring by insuring all means of recovery and transport in order to reach international standards. • Include Sonatrach strategy concerning the environmental aspect in order to realize: • The environmental protection • The use of a less polluting energy • The development of research activities: gas flaring recovery programme • A first step in a sustainable improvement process which will allow a more dynamic communication on environmental performances as far as greenhouse gases are concerned. 7. Conclusion: SONATRACH encourages and finances research programmes on the subjects related to the energy and the environment. • Sonatrach contributes by its long experience in offering a source of energy by taking into account: • The environment protection • The sustainable development • The climate changes • The existing gas infrastructures reflect the importance and the structured character of the pipelines linking Algeria to Europe. • The worldwide need of gas energy is unavoidable on a medium and long term. That is why it is important to adopt the principal of improvement of the performance of Health, Safety and Environment related to the utilisation of the gas by taking into account the significant environmental aspects related to the climate changes. .