The Algerian gas pipeline network: Reliability, supply perspectives,

optimal extension and its interconnexion to the European and

Mediterranean network.

Abdelkrim Ainouche, Engineer, Gas Department Manager , SONATRACH / RTE, Skikda,
Algeria; Abdelnacer Smati, Doctor, INH, Boumerdes Algeria.

Abstract.

Algeria is an important gas supplier particularly to Europe. This paper presents the Algerian gas
transmission pipelines perspective and provides the current gas supply and demand situation.

As domestic-gas demand continues to grow, and to increase exports, this paper discusses the
requirements for futur major pipelines development in the next years, and thus contribute to meet the
increasing demand, particularly in the European and Mediterranean market.

New export capacities will be determined depending on the routes and industrial or commercial and gas
partnerships strategies .Strategic decisions for new supply of gas and storage infrastructures must be
made years in advance because the security of supply is dependent on deliverability, available pipeline,
and storage capacity. The paper illustrates Algerias effort to reduce costs through the optimization of the
global system.

The conception and extension of a complex gas transportation network requires very important
investment in addition to operating costs essentially due to maintenance costs.However to be efficient,
the optimal extension of such a system must previously go through a technical diagnosis of existing
works.

The line transportation capacities fluctuate randomly and evolve according time in the sense of reduced
performances mainly due to breakdowns, and obsolescence of compression equipments as well as the
corrosion and the evolution of the internal roughness of the pipe.

The approach we have in the paper associates local models of existing works reliability to a non-linear
programming model with mixed variables solved by a generalised reduced gradient ( GRG ) type
algorithm associated to a branch-and-bound type procedure.

Introduction

Natural gas is the fuel of the 21
st
century. Algeria, a gas country, a traditional player in gas industry , an
important gas supplier, particularly to Europe, has developed close cooperation relationship with major
gas countries operating in the market. The objective is to increase exports of Algerian gas and, thus,
contribute to meet the increasing demand, particularly in the European market.

Algeria believes in gas, in its qualities as a clean ressource, in its future, and also in its profitability. The
countries that will win in this environment are those that can innovate, those that can change, and those
that can communicate.Pipelines and LNG tankers are rapidly linking markets previously isolated by
geography, making gas a more global commodity . Just a few decades ago natural gas was little more
than a waste product of the oil industry. Today it is the fuel of choice, a major contributor to sustainable
development.

Gas transportation has grown from simple local supply systems to international and pan-continental
networks.Algerian transportation system consists of a network of 13 gas pipelines covering a distance of
7300 km extending over most of Algeria. It is necessary to develop a procedure of modeling that includes
all the technical possibilities, and to solve the problem of the optimization of the global system and the
definition of the optimal configuration and optimal expansion of the network. The international gas market,
especially the European one, is strongly competitive.Consequently, the reliability appears to be an
essential criterion for the conservation of market parts
1
.



The construction of Algerian gas system

In 1961, gas production began at Hassi Rmel in central Algeria.
Algeria is one of the major gas producing countries of Africa. In addition to its upstream strength, Algeria
has a strong downstream sector which includes refining, distribution, marketing, and chemicals.Its current
proven reserves are estimated at 4.52 trillions cubic meters (tcm) of natural gas at end 2000. This
represents 3.0 percent of the worlds natural gas reserves
5
.

Algeria is particularly rich in natural gas and has instituted a strategy of investing in facilities that exploit
these ressources. Algeria also ranks seventh in the world after Russia, Iran, Quatar, Saudi Arabia, the
UAE and the United States in terms of gas reserves. Algeria is also promoting the use of natural gas in
the domestic market especially in the industrial sector, where plants can easily be converted from fuel oil
to gas
5
.

Natural gas represents 56 percent of Algerias total proven hydrocarbon reserves . Natural gas
represented 5% in 1970, 33% in 1980 of Algerias total hydrocarbon production and reaches today more
than 65%
4
.

The part of the Algerian gas in the gas balances in some European countries is 86% for Portugal, 61% for
Spain, 49% for Italy, 26% for Belgium, 25% for France and 21% for Turkey. Today about 97% of Algerian
gas exports supply the European market next to Russia, and Norway, one of the main suppliers of the
Europe. Algeria accounts for 29 percent of European Union gas imports and 15% of gas consumption
4
.

Two-thirds of known reserves are contained at Hassi Rmel. Others gas deposit at In Salah, Tin Fouye,
Tabenkort, Rhourd Nous, Hamra and Alrar. Four plants 3 in Arzew and 1 in Skikda, liquefy gas for export.

The revamping and upgrading of the Arzew and Skikda liquefaction plants was completed in 2000.
Revamping and expansion of Arzew and Skikda bring their production to around 30.5 bcm a year.

A network of export pipelines link the gas fields to terminals for the export of Algerian natural gas. Algeria
became the worlds third biggest natural gas exporter and second world largest exporter of LNG. Algeria
has built two major gas pipelines to facilitate exports to europe. The Pedro Duran Farell gasline (GPDF)
was completed in november 1996, allowing the transportation of 7.9 bcm per year to Spain, Portugal, and
Morocco. The existing 2,100-km Enrico Mattei gasline (GEM) to Italy via sicily has been expanded,
providing throughput capacity of 24 bcm per year to Italy and neighboring markets. Both pipelines run
from Hassi Rmel through neighboring countries-the GEM through Tunisia and th GPDF through Morocco-
before crossing the Mediterranean seabed
2,3
.

Natural gas trade in the Mediterranean area

During the last three decades there has been an important expansion of the natural gas trade in the
Mediterranean area:

1970 : About 1 bcm/y ( LNG from Arzew, Algeria ).

1980 : 7.7 bcm/y ( 5.8 bcm/y of LNG from Arzew and Skikda, Algeria and 1.9 bcm/y from Lybia ).

1990 : 30 bcm/y ( 19 bcm/y of LNG, mainly from Algeria,11bcm/y piped through the GEM gasline,
between Algeria and Italy ).

2000 : 63 bcm/y, of which 45% as LNG ( mainly from Algeria, with small quantities from Quatar, Oman,
the UAE and Libya ) and the remaining 55% piped ( 27 bcm/y through the GEM gas line and about 8
bcm/y via the GPDF gas line between Algeria and Spain ).

2005 : Import-export movement of Natural gas in the Mediterranean area are expected to grow further to
a level estimated in the range of 90-95 bcm/y ( 85 bcm/y from Algeria ). In this view, natural gas transport
infrastructures have to be expanded, particulary the export from Algeria and Lybia ( project of 8 bcm/y
gas pipeline from Libya to Italy ).

As to proved natural gas reserves of the exporting countries in the Mediterranean area, the largest gas
reserves are in Algeria ( 4.52 tcm ), followed by Libya ( 1.31 tcm ) and Egypt ( 1,0 tcm ). Algeria is
actually the country with the most ambitious plans of growth in gas production and export capacities
6
.

Network expansion and Projected gas export capacity

One of the reasons for the expected increase in demand is that gas involves environmental advantages
compared with the other fossil fuels.
More cooperation between exporters and importers will be desirable in all the different phases of the
projects and the construction of the necessary infrastructures, whether there are pipelines or LNG chains.
Increases in export pipeline capacity are necessary for a projected gas export capacity of 85 bcm a year
before the year 2005. There are plans to boast the GPDFs throughput capacity to some 12 bcm a year (
in final phase it will transport 18.5 bcm/y), and to add further 6 bcm capacity to the GEM line through the
construction of new compression stations.

Other projects include: Development of the In Salah gas project which is designed to move Algerian gas
to existing systems in Morroco and Spain, for delivery to European markets. The seven In Salah gas
fields contain at least 7.5 tcf of high quality net sales gas, as well as additional reserves in adjacent
reservoirs. Total production, expected at around 9 bcm/y will be destined for southern European markets.
Krechba will be the primary processing and compression center as well as the site for reremoval of CO2
before drying and export via the main 48-inch export pipeline to Hassi RMel. The extracted CO2 will be
compressed and re-injected north of Krechba field.

Algeria continues to study the possibility of a 324-mi, 42-in gas transmission line to deliver gas from
Tighentourine to Hassi Rmel. This line would connect to existing systems for delivery to European
markets.

The project of a sub-sea gas pipeline between Algeria and Spain (direct connection ), from Beni Saf, near
Arzew, the transmission pipeline will cross the Mediterranean sea over a distance of nearly 200 km and
reach the area of Almeria, on the Spanish coast with a capacity of 8 bcm/y to 10 bcm/y. It is scheduled to
be brougth into service by late 2005.

The gas pipeline project Algeria-Italy via Sardinia, is to cover a distance of nearly 1470 km with an initial
capacity of 8 bcm/y. The gas pipeline will leave Hassi Rmel and join via El Kala, the South, then the
North of Sardinia and finally reach Castiglionne Della Pescaia, a region located North of Roma .

The project for the creation of a Trans-Saharan gas pipeline connecting Nigeria to Algeria. This pipe of
4000 km in length will convey, via the Sahara, Nigerian gas from the Abuja fields to Beni Saf, near Arzew.
It will supply the whole West African region with Natural gas, and coupled with the grid existing in Algeria,
it will supply Southern Europe
2,3
.

Design and optimization of a gas transmission network

The design or expansion of a gas pipeline transmission system involves capital expenditures as well as
the continuing cost of operation and maintenance. Substantial savings can be expected by improving the
system design for a given delivery rate.





Pin = PDO PS1 PD1 PS2 PD2 PSn PDn
Pout = PS n+ 1
. Q
d1,L1 d2,L 2 dn + 1 , Ln + 1


The objective function :

( ) j
n
j
j c
i
i
i
n
i
i i d L C Q
PS
PD
T A C C Z

+
= =
+
(

+ =
1
1
1
1
0 min 1
1
) (

0
C : Yearly operating cost $/Kw.year
i
C : Compressor capital cost $/Kw.year
c C : Pipe capital cost $/Km.in.year
SC1 SC2
SCn
n : Theoretical number of compressor stations.
i
T
1
: Inlet temperature in compressor station i, kelvin
K
K 1
=
i
PD : Discharge pressure in bar
i
PS : Suction pressure in bar.
Q : Flow rate in Nm
3
/hour.
j
L : Length of pipeline segment j in km.
j
d : Diameter of pipeline segment j, inch
K : Specific heat ratio

The constraints :

Logical constraints :
0 i i PD PS for all i = 1 to n

Constraints on compression ratio :
0
max
i
i
i PA PD for all i = 1 to n

Constraints on discharge pressure :
0 MAOP PDi for all i = 1 to n

Constraints on diameters :
0
min
j
j
d d for all j = 1 to n + 1
0
max

j j
d d for all j = 1 to n + 1

Constraints on pressure loss :
0
2
5
1
1
1 1
2
= =
+
+
+ + Q
d
L
K PS PD
i
i
i i
i
for all i = 1 to n
Constraints on suction temperature :

( ) 0
1
exp
1 1
=
|
.
|

\
|

+ + A TE TD TE TA i i i i i
Q
for all i = 0 to n

i TE : adjusted soil temperature
i TD : discharge temperature
i A : heat-transfert exponent
Q : flow rate

Constraints on the length of the pipeline :
T
n
j
j L L

+
=
=
1
1
j = 1 to n+1
max

: Maximum compression ratio

MAOP : Maximum allowable operating pressure
min
i
d : Minimum diameter
max
i
d : Maximum diameter
T
L
: Total length of the pipe

Non linear programming model with mixed variables.

The problem set this way is solved by a non-linear programming algorithm using a generalised reduced
gradient ( GRG ) type associated to a branch-and-bound type procedure for the integer variables
7
.

Conclusion

Algeria plays an important role in supplying the international gas markets and is the first Mediterranean
gas country. A wide gas pipeline network supplies the national consumption centres, the liquefaction units
and the international customers. In this view natural gas and LNG export capacity will be expanded, to
reach 85 bcm/y before the year 2005. Algeria is actually the country with the most ambitious plans of
growth in gas production and export capacity.

References

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th
WPC, Calgary, Canada
(june, 2000).
2. Sonatrach / Marketing Activity, Communication and Documentary Information, Sonatrach Gas
Marketing , Alger (Dec. 2001).
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Summit of the Gas Industry Leaders, Paris, France ( 18-19 Oct. 2001).
5. BP, Statistical Review Of World Energy , (June 2001).
6. Lanaro, Marcello, Marches, Gas Demand and Supply Perspectives in the European and
Mediterranean Region, 16
th
WPC, Calgary, Canada, (june 2000).
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Synthesis Aiche J; 32(4), 1986.
8. Edgar, T. F., D. M. Himmelblau, and T. C. Bickel, Optimal Design of Gas Transmission Network,
Soc. Petrol. Eng. J., 30:96 (1978).
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Transmission Networks-A Decomposition Approach Engr. Opt., 6,13 (1982); Dynamic Sizing and
Locationing of Facilities of Naturall Gas Transmission Networks Engr. Opt., 6,95 (1982).