1. Said Akretche , Chairman and Managing Director of NAFTAL - Algeria
22nd World LP Gas Forum, Rio de Janeiro - Brazil
7th – 9th October 2009
ALGERIA : A LEADING LP GAS EXPORTER AND
CONSUMER
Said Akretche , Chairman and Managing Director of NAFTAL - Algeria

2. 22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
1. Introduction
Algeria is a leading LPG producing country.
In 2008, Algerian exports reached 7.5 million tons and domestic consumption exceeded 1.95 million tons.
However, the on going policy proping up natural gas consumption has hampered the growth of LPG in particular bottled butane, a product that remains the vital source of energy in rural areas.
Nevetherless, opportunities for development of the domestic market of LPG (bulk butane, bulk propane, small public distribution network of LPG and LPG auto gas) exist and can be a valuable alternative.
Thanks to abundant resources and because of their properties, LPG can play a greater role in meeting energy needs in transportation, industrial and agro business sectors in the future.
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

3. 2. Place of LPG in the Algerian energy policy
The consumption energy model : Rank of LPG
Environment Act
Natural gas & LPG
Renewable and solar
energies promotion Act
Promotion of use of the most available energy forms
The Algerian energy consumption model
Energy efficiency
Environment protection
New fuels pricing structure
New tariffs on Electric power & gas
Saving Energy Act (1999)
Energy Auditing (déc )
The SavingEnergy NationalPlan
The saving Energy National Fund
Intergouvernement Commetee
for Saving Energy
Tariff policy
Strategic options
Conventional fuels substitution by
Widespread use of LPG Fuel
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

4. 3. Exports of LPG Algerian LPG development strategy is based on :
The strengthening of its leadership on the European market in general and the Mediterranean market in particular;
The increase of its shipping capacity;
Downstream integration;
Investment in terminals & storage capacity ;
Arbitrage opportunities.
Million tons
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

5. 4. LPG meeting energy needs in Algeria
Large specter of uses…
…Consumption
Product
Uses
Propane
Industrial sector ( bulk propane and bottled propane, petrochemicals, power, generation, fuel for agro business and small industries ….)
Domestic sector (collective propane for small isolated agglomeration, small tank, bottled propane…)
Commercial butane
Industrial sector (bulk butane, fuel for clean industries, etc.)
Residential and commercial sector (bottled butane)
LPG auto gas
transportation
In 2008, LPG consumption in Algeria represented % of the total final energy consumption.
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

6. 4. LPG meeting energy needs in Algeria
LPG in the Algerian energy chain
LPG is produced in oil and gas fields, located in the southern region of Sahara.
It is transported by a an extended pipelines network to separation plants in Arzew.
LPG is also produced by oil refineries and LNG plants.
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

7. 4. LPG in meeting energy needs in Algeria
LPG supplies
Production of LPG in gas fields
Production of GPL in oil fields
Treatment units (GP1Z and GP2Z)
LNG plants
Oil refineries
Propane and Butane
Export
Domestic market
Bulk Propane and Bottling Propane
Bulk Butane and Bottling Butane
LPG/F
Separation units (in oil and gas fields)
LPG production in Algeria (2008)
Million tons
Source
Propane Production
Butane Production
Total
Treatment units GP1Z and GP2Z
4.50
4.05 
8.55
Oil refineries
0.08
0.49
0.57
LNG plants
0.65
0.29
0.94
Separation units (in oil and gas fields)
0.095 
0.20
0.295
5 .325 
5.03
10.355
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

8. 5. LPG Market in Algeria
NAFTAL : the leading LPG distributor in Algeria (1)
NAFTAL is an Algerian company for distribution of petroleum product and LPG.
NAFTAL is 100% subsidiary of SONATRACH GROUP.
Fuels
Aviation
Marine Fuels
Lubricants
Bitumen
Tyres
Training
LPG
Naftal missions
Sales of petroleum products and LPG
Development of distribution infrastructures and complying with the environment and safety energy policy
Training in petroleum products distribution business
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

9. 5. LPG Market in Algeria Storage Distribution network Organization
NAFTAL : the leading LPG distributor in Algeria (2)
Storage
Distribution network
1 940 service stations
49 fuels storage facilities;
03 LPG bulk storage facilities;
42 LPG bottling plants;
47 bottled LPG storage outlets;
26 aviation fuels storage facilities
06 marine fuels storage facilities
27 lubricants and tyres warehouses
15 bitumen units
Organization
Staff
LPG Division
Fuels Division
Marketing Division
LPG Districts
Fuels Districts
Marketing Districts
Transportation
910 km of transmission pipeline (180 km under construction)
3 000 vehicles (heavy duty trucks and tankers)
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

10. 22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
5. LPG Market in Algeria
Butane : Consumption
The Algerian butane consumption rose from 1 million tons in 1990 to 1.5 million tons in 2008.
During this period, the annual average growth rate had been 2.4%. This low growth was due mainly to rural exodus and natural gas grid expansion.
In 2008, butane represented % of total LPG sales.
1000 tons
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

11. 5. LPG Market in Algeria Propane & autogas : Consumption
1000 tons
Propane consumption rose from tons in to tons in 2008
The annual average growth on this period had been 7.6 %
The growth in demand is mainly bolstered by the industrial sector.
Sales of bottled propane stabilized in the 1990s. Before 2004, sales maintained the same growth at a rate of 0.5 % a year.
During the last ten years, the LPG fuel average consumption growth rose by 10 % per year
The share of LPG fuel in the total consumption of fuels is small (4 % in 2008).
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

12. 5. LPG Market in Algeria (LPG bottling plants)
RA1.K
RA1.G
Bottling plants Naftal (42)
Skikda
Annaba
El Taref
Bottling Plants Other Operators(15)
Béjaia
Jijel
Alger
Boumerdes
Bottling Plants on project (30)
Tipasa
OEB
T.Ouzou
Guelma
Chlef
Blida
Constantine
GP1.Z
GP2.Z
Mostaghanem
A.Defla
Mila
Sétif
S.Ahres
Oran
Bouira
Tissemsilt
BBA
Relizane
Médea
A.Timouchent
Mascara
Batna
Tebessa
Tiaret
M’Sila
Khenchela
Tlemcen
Djelfa
Biskra
SBA
Saida
El Oued
Naama
Laghouat
El Bayabh
Ghardaia
Ouargla
Centres emplisseurs GPL
HMD
Tindouf
Adrar
H. R’mel 12
Djanet
Tamanrasset

13. 22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
5. LPG Market in Algeria
LPG demand
tons
Bottled
Shrinking of demand for bottled butane .
Expansion of LPG consumption will be carried by propane development and LPG
fuel promotion.
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

14. 22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
6. natural gas grid expansion
Sonelgaz, the public company for power generation and natural gas distribution is the main competitor for LPG distributors;
Between 2004 and 2008 : the natural gas distribution network increased by 4000 km to a total length of km;
2008 : natural gas grid expansion reached 30% of households. The expansion of natural gas affected negativelly the sales of LPG; especially bottled butane.
Sonelgaz had an ambitious program for the time span of connecting many villages and towns to its natural gas grid;
2012 : Sonelgaz objective is to reach up to 50 % of households.
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

15. Sonelgaz natural gas grid : 27 000 km
6. natural gas grid expansion
Sonelgaz natural gas grid : km
Electric facility
Natural gas plant

16. 7. market deregulation
Market deregulation objectives ( Law and Decree ) :
Opening of the domestic market of petroleum products
Promoting investments in storage and distribution of petroleum products.
Improvements in terms of public services, safety and environment concerns.
Results of Decree :
Emergence of 15 private operators in bottling and
LPG sales.
Distribution operations improvements ;
better services to the customer.
With some difficulties :
Cross filling;
Safety issues;
Marketing unfair practices.
New legislation ( law and & decrees ) :
Unbundling ;
Open access with creation of the Storage Infrastructures Manager ;
Supervision by the Regulation Hydrocarbons Authority (ARH).

17. 7. Impacts of the market deregulation
LPG Market after the law and & decrees
Storage Infrastructures Manager
Providers
Distributors
Oil refineries
LNG plants
Storage Infrastructures Manager (Gestionnaire des Infrastructures de Stockage - GIS)
Service-stations
Sales points
Bottling plants
Wholesale customers
Field treatment units (GP1Z and GP2Z)
Wholesale distribution
Input prices
Wholesale prices
Post stamp rates for logistics
Retail prices
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

18. 22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
8. CONCLUSION
Algerian energy policy promotes the development of exports and consumption
of LPG;
Algeria is a one of the leaders in the international market of LPG;
Naftal is LPG historical actor and currently the market leader in Algeria alongside
with new private operators ;
Naftal is shifting its development strategy of LPG from bottled butane to promoting of autogas and bulk propane in order to make up for loss of market (actual and coming) to natural gas.
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009

19. 22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009
Thank you
22nd World LP Gas Forum, Rio de Janeiro– Brazil 7th – 9th October 2009