Potentialities

Energy infrastructures investment requirements (electricity and gas) in the country are still very important ($US 12 bn for the next ten years). These are dictated by :

The importance of these investments is still increased when allowing for the energy options developed, encouraging natural gas consumption and the follow-up of rural electrification, more particularly for the development of the high plains regions.

On these grounds, the new law on electricity and public distribution of gas through pipelines has been adopted recently, changing the statute of Sonelgaz to joint-stock company, carrying out the activities of gas public distribution and electricity, will allow :

Investment niches market by 2010

A. Electricity

Transportation system

The additional capacity of transmission and interconnection lines to bring on stream is estimated at 5350 km for the VHT (Very High Tension) and 2750 km for the HT. The achievement of around 140 power stations and substations will be required.

Distribution network

Power distribution provided through the medium (10 and 30 KV) and low tension systems (220-380 V) should record an important development.

More than 100,000 km of networks and around 50,000 transforming stations (100 to 400 KVA) should thus be commissioned.

The number of meters to install is of 3,500,000 (new consumers and replacement of old meters).

Production

In order to meet the future needs of the various customers and more particularly the industrial ones, electricity production should double and rise from 24,400 GWH currently to around 46,000 GWH in 2010.

In this regard, the additional requirements in production capacity are estimated at 6000 MW for the period mentioned. It should be noted that the new law on electricity and public distribution of gas adopted in 2002, removed the state monopoly concerning the electricity production.

B. Gas

The evolution of natural gas consumption by 2010 will require a development plan for the transportation and distribution infrastructures. The expected investments for the period are as follows:

Transportation system

Networks of 4,500 km, 3,000 km of which for the implementation of the public distribution programs.

Distribution networks

The connection of 40 new locality/year on average for the public distribution of natural gas; approximately 500 additional towns will be connected to the natural gas NG network by 2010.

These new stations correspond to the achievement of around 9,000 km of distribution networks, to which 7,500 km will be added for the extensions and the intensification of the already supplied towns systems.

On these grounds, it is worth mentioning the adoption by the Government in April 2002 of a 2002-2004 three-year gas program aiming at the natural gas connection of 188 new towns, gathering over 358,000 homes, and requiring the achievement of about 1,800 km of transportation systems and 6,200 km of distribution networks. The project cost is estimated at 35,700 million dinars.