BP's Algerian gas project needs environmental go-ahead
© 2000 Reuters Limited
November 10, 2000
ALGIERS - Algeria is waiting for BP Amoco to provide guarantees that its $2.5-billion In Salah gas project will not affect the environment before granting it an exploitation license, a government minister said.
Energy and Mines Minister Chakib Khelil, speaking at his weekly briefing late on Wednesday, said he had asked the major questions related to carbon dioxyde emissions.
"We are waiting from BP to tell us exactly what to do with the carbon dioxyde generated by the exploitation of gas in Salah ... BP is known as a very strict company regarding environmental issues and there might be a solution to this problem," he said.
The minister said BP was searching for a location to re-inject the gas without affecting present or future oil and gas fields developments.
The In Salah gas project is expected to go onstream by 2003. Its planned annual production of nine billion cubic meters of gas will increase Algeria's production by 15 percent.
The output will supply southern European markets through trans-Mediterranean pipelines. Algeria is Europe's biggest gas supplier with exports totalling 60 billion cubic meters per year.
BP Amoco-Algeria President Michael T. Hefner said last week his company hoped to receive soon the the government approval to start developing the In Salah project.
A senior official at BP-Algeria said on Wednesday his company and Algerian state-company Sonatrach were discussing where to re-inject the carbon dioxide without causing problems to oil and gas fields close to it.
"Our experts and Sontrach's are working on the possibility of re-injecting the carbon dioxyde near Krechba field... we understand the ministry wants to make sure this place is a good one," External Affairs Manager Barry Halton said.
Asked whether the issue could delay the project, he said: "We hope not, this is a question of geologists and we and Sonatrach are in the same position. We hope the ministry will be reassured the place will not cause problems for future oil and gas developments."