SONATRACH TRANSPORTATION ACTIVITY Mr Ait Abdesselam Abdelkader Corporate planning Manager Sonatrach Oran- 13 October 2015 MISSIONS OF THE PIPELINE TRANSPORTATION ACTIVITY 2 MISSIONS OF THE PIPELINE TRANSPORTATION ACTIVITY • Defines, builds, operates, maintains and develops the network of pipelines and related facilities to meet the needs of transport profiles in optimal conditions of economy, quality, safety and the environment; • Regulates between production and marketing. • Coordination of strategic issues related to pipeline transport activity, as well as the settlement of critical operational interfaces thereto, • Management of operational interfaces • The preparation of the decision of strategic importance, 3 Organization Having a look to the organization of Sonatrach, the transportation by pipeline activity is the link controller to the entire hydrocarbons chain. 1. UPSTREAM Activity, has in charge the research, exploration and the hydrocarbons production, 2. Tranportation Activity, in charge to develop, manage and operates the transportation network, 3. DOWNSTREAM Activity, is responsible for the elaboration and implementation of development and operations policies for the oil and gas downstream sector. 4. Marketing Activity, has in charge the management of the sales transactions and shipping of hydrocarbons. Missions of TRC Hydrocarbons production fields GEM (Italy) CONDENSATE TRANSPORTATION NATURAL GAS ACTIVITY GPDF MEDGAZ (Spain) CRUDE OIL SONELGAZ LPG Industrial Units REFINING LIQUEFACTION ACTIVITY DISTRIBUTION BUTANE/PROPANE LNG MARKETING ACTIVITY ACTUAL NETWORK NETWORK MAP 22 Pipeline Transportations Systems with a total length of 19 623 km Capacity of 357 MTOE ACTUAL NETWORK/ Natural Gas SKIKDA Carthagène BEJAÏA Tunis Almeria Alger ARZEW Issers El Kala H.Nouss GG1 GK2 GK3 Beni GZ4 GZ3 GK1 Saf GZ2 Oued Sougueur GZ1 Saf Saf Al Aricha GZ0 GO3 GO2 GO1 Mechraâ Ennouar GPDF HASSI R'MEL GR1 GR2 GR4 H.E.H GR5 Capacity: 163 Bcm R. Nouss Length : 9153 Km GR1 GR2 ALGERIA Alrar Existing Under construction Reggane ACTUAL NETWORK/ LPG SKIKDA BEJAÏA Carthagène Alger Tunis ARZEW LNZ1 LZ2 LZ1 LNZ1 HASSI R'MEL LR1 H.E.H ELR1 G.Touil DLR1 LR1 Capacity 21,6 MTA Length: 2 886 Km ALGERIA Alrar Existing Ohanet Under construction ACTUAL NETWORK/ Condensate SKIKDA BEJAÏA Carthagène Alger Tunis ARZEW NZ1 NK1 HASSI R'MEL HASSI MESSAOUD –H.E.H NH2 ALGERIA Ohanet Capacity: 27,1 MTA Length: 1718 Km ACTUAL NETWORK/ CRUDE OIL SKIKDA BEJAÏA Carthagène Alger Tunis ARZEW DOG1 Béni Mansour OK1 OZ1 La Skhira OZ2 OB1 OZ1 HASSI R'MEL OZ2 OD1 OD3 H.E.H HASSI REB El Borma MESSAOUD OH2 Mesdar OH1 HBN OH4 OH3 ALGERIA OT1 Alrar Ohanet Capacity: 141,1 MT Length: 4 971 Km In Amenas ACTUAL NETWORK Network infrastructure 2015 2019 9% increase of the length STC 22 (*) 22 6% Length KM 19 623 21 337 46% 12% increase40%in transportation Compression and capacity Pumping Plants 82 88 Total Capacity 357 400 MTOE/Y 1% increase in storage capacity Storage Tanks 3,25 3,29 MTOE/Y (*): 1 STC under construction (GR5) Actual patrimony 22 Pipeline Transportations Systems with a total length of 19 623 km 82 Pumping and Compression Stations 127 Storage Tanks 03 Oil export Terminals 05 SPM 03 Operating Directions of maintenance (DRC – DML – DMB) 03 Regional Basis of intervention (HEH – Barika – SP6/Tiaret) 01 Gas Dispatching National Center (CNDG) 01 Liquids Dispatching Center (CDHL) 01 Storage and Transfer of Hydrocarbon Center (CSTF) PLAN OF MID-TERM DEVELOPMENT 2015-2019 22,63 22,48 Volume be transported in the mid-term : MTOE 15,84 21,69 281,5 157,27 79,09 98,68 12,82 13,44 + 38% 203,8 102,05 82,84 75,45 2013 2019 Gaz Naturel 109 Cm3 Pétrole brut 106 TM Condensat 106 TM GPL 106 TM Development Plan For the mid term, Sonatrach aim to pursue his efforts in the development of his network Development, Rehabilitation and Safety 7,4 Billions Fiabilisation and US $ conformity 2015-2019 New life camps The mid terme program is as follow : . Construction of 3 298 Km of pipelines : - 1 714 Km of new pipelines, - Reéhabilitation of 1 210 Km, - Deviation of 374 Km. Construction of 05 compression plants and one pumping plant, . To start the construction of a new CNDG at Hassi R’Mel, Main development projects 2015-2019 • Pipeline GR5 48" (Reggane - Krechba- Hassi R’Mel) sur 765 km : 10 bcm/an - Pipeline : End of the year 2015, - (02) Compression Plant : -Hassi R’Mel - July 2016, - Krechba – October 2017. • Pipeline GR6 48" (Rhourde Nouss - Hassi R’Mel) sur 536 km : 10 bcm/an - Pipeline June 2017, - (02) Compression Plant : Ouargla et R.Nouss - October 2018. • Pipeline GR7 48" (PC4 – Hassi R’Mel) sur 347 km : 7bcm/an - Phase I : February 2018 - Phase II : August 2019, • New Dispatching Center at Hassi R’Mel : - Date of commissionning: June 2018 Mid-Term Outlook of the Activity The structure of this medium term transportation program indicates the gas connotation of the plan, taking into account the arrival of new projects upstream and downstream Increase of the Domestic demand Synergy Developement of the South West South East Development (Gassi Touil, MLE & CAFC, Quartzites Hamra, Z-Cina, El Merk, …) Petrochemicals Projects New Indicators INTERNATIONAL SIDE INTERNATIONAL At the International, SONATRACH TRC operates Three Majors corridors making a « link » with Europe : The GPDF, the GEM and the MEDGAZ with a total export capacity of 53 BCM/Year. MEDGAZ GALSI Sonatrach: 36% Sonatrach: 41,6% Cepsa: 20% Edison: 20,8% Iberdrola: 20% Enel: 15.6% Endesa: 12% SFIRS: 11.6% GDF Suez: 12% G. HERA: 10.4% ESPAGNE ITALIE 8 Bcm/year Started in 2011 8 Bcm/year Arzew Skikda Hassi R’Mel Sonatrach operates its part in the tranportation system in the CAMISEA Project In Peru through its participation in the TGP Company. CONCLUSION To meet the commitments of Sonatrach, transport pipelines Activity has always fullfilled its role perfectly as a preferred tool of the operational strategy of Sonatrach, optimizing services provided to partners and other group activities through operational implications declined around the following items: Development of transportation capacity for the purpose of ensuring the evacuation of all hydrocarbon production and supply all the consumption centers, Development of the Storage Capacity , processing and dispatching of hydrocarbons. THANK YOU FOR YOUR ATTENTION The Pipeline Transportation Activity provides for the delivery of hydrocarbons (crude oil, natural gas, LPG and condensate) through a pipelines network of almost 16 200 Km. Through this oil and gas pipelines system, 244,5 million toe (all products combined) were transported in 2007. The pipe transportation system counts 12 gas pipelines with a combined length of 7 459 km, with a transportation capacity of 131 Bm3/ year, 39 Bm3 of which are intended for exports. Since the commissioning of the 02 transcontinental gas pipelines, Enrico Matei (connecting Algeria to Italy via Tunisia) and Pedro Duran Farrel (linking Algeria to Spain via Morocco); new construction projects are being implemented, particularly in order to meet the European market growing demand The Pipeline Transportation activity counts the following : 79 pumping and compression stations equipped with more than 290 main machinery for a total power of over 02 million CV a storage capacity of around 3.4 million m3 a harbor loading capacity of around 210 MTA a maintenance infrastructure organized around 03 maintenance main bases and 03 intervention regional bases a gas dispatching national center (CNDG) in Hassi R’Mel a liquid hydrocarbons dispatching center (CDHL) in Haoud El Hamra. Gas Pipeline Projects in progress: The MEDGAZ Project is a natural gas transportation pipeline crossing the Mediterranean Sea and connecting Algeria to Europe via Spain. Starting in Beni-Saf, close to Arzew, the pipe crosses the Mediterranean over approximately 200 km at a depth of 2160 meters. The gas pipeline will convey, in its first phase, a volume of 8 billion m3 per annum, as from July 2009. The GALSI Project consists of the construction of a gas pipeline over approximately 1 470 km, starting in Hassi-R'Mel to reach Castiglionne Della Pescaia, in the North of Roma (Italy). The offshore section should connect El Kala (Algerian coast) to Italy via Sardinia. With an initial capacity of 8 billion m3/year, the pipeline is expected to serve Italy, the South of France and the European countries to the North of the Alps. The 4200 km length TSGP project, 2310 km of which on the Algerian territory and 1037 km in Nigeria, will connect the terminal departure of Warri (Nigeria) to the arrival terminal on the Algerian coast and will allow to transport a volume of natural gas estimated between 18 and 20 billion m3/year. .