APS : Friday, 23 November 2018
ALGIERS- Minister of Energy Mustapha Guitouni underlined Thursday, in Barcelona (Spain), the constraints that impede a better global growth of gas industries,
including notably competition that this energy is facing in all segments.
“Natural gas is facing three difficulties: the first results from its weak energy density, leading to relatively high transport costs. The second is that without controlling methane emissions in the production chain, its advantage for the climate is reduced. The third is that, contrary to oil which has a captive sector, that of transport, gas is everywhere competing with other alternative energies,” said Guitouni in the 6th Ministerial Gas Forum, organized jointly by the International Energy Forum (IEF) and the International Gas Union (IGU).
That is why, argued the minister, “natural gas requires the implementation of energy policies which encourage the protection of environment, remunerate the backup capacities in electricity sector, and generate a carbon signal price that is strong enough.”
Despite the promising gas prospects, the minister pointed out that to ensure the development of deposits and required infrastructures, “it is necessary that the gas price is remunerative enough and that predictability is ensured in terms of demand.”
In this regard, he emphasized the changes recorded in some markets aimed at favoring short term transactions.
In addition to the constraints, Guitouni pointed out the advantages of natural gas, in comparison with other energies, like its flexibility and abundance.
While broaching the Algerian experience, Guitouni said that Algeria is one of the leading countries in natural gas and one of the first gas exporters.