The deficit in the primary energy balance dropped by 10% in the first half of 2023 compared with the same period in 2022, according to the report on energy trends for June 2023 published on Monday by the National Energy and Mining Observatory under the Ministry of Industry, Mines and Energy.
This reduction is mainly due to the fall in primary energy demand, while hydrocarbon production has worked in the opposite direction, the same source explained.
Taking the royalty into account, the primary energy balance showed a deficit of 2.08 Mtep at the end of June 2023, a decrease of 10% compared to the end of June 2022. The energy independence rate, which represents the ratio of primary energy resources to primary energy consumption, was 52% at the end of June 2023, compared to 51% at the end of June 2022. Excluding the royalty, the energy independence rate would be limited to 41% at the end of June 2023, compared to 40% at the end of June 2022.
6% drop in primary energy resources
Primary energy resources reached 2.3 Mtoe at the end of June 2023, a decrease of 6% compared to the same period of the previous year. This decrease is mainly due to the decline in domestic production of crude oil and natural gas. Domestic production of oil and gas continues to dominate primary energy resources, together accounting for 74% of total primary energy resources. The share of renewable electricity (STEG production only) remains modest, accounting for only 1% of primary resources.
It’s worth noting that the royalty for Algerian gas transit recorded a decrease of 2% at the end of June 2023 compared to the same period in 2022.
According to the same source, primary energy demand fell by 8% between the first half of 2022 and the first half of 2023. The demand for natural gas decreases by 12%, while the demand for oil products dropped 4%. In particular, demand for natural gas fell by 12% due to restrictions on Algerian gas purchases. STEG relied on electricity imports to meet and cover the total national demand for electricity.
The structure of primary energy demand changed slightly, with the share of oil products increasing from 48% at the end of June 2022 to 50% at the end of June 2023. Conversely, the share of natural gas decreased from 52% at the end of June 2022 to 50% at the end of June 2023.
Source: Agence Tunis Afrique Presse