New Developments in Storage, Distribution of Petroleum Products: A Step Towards Transparency and Competitiveness

BY: Dr. Hana Saada

Algiers, Algeria | January 05th, 2024 — In a move poised to bring significant changes to Algeria’s energy sector, Rachid Nedil, the President of the Hydrocarbon Regulatory Authority (ARH), disclosed details about a new executive decree designed to regulate the storage and distribution activities of petroleum products. This decree, which has recently been reviewed by the government, seeks to foster competition, improve professionalism in the sector, and ensure fair practices among market players.

The proposed decree outlines a comprehensive framework aimed at bolstering the sector’s competitiveness. According to Nedil, the goal is to encourage fair competition and professionalism among stakeholders, which will ultimately benefit the national economy and the end consumers. Furthermore, the regulatory framework also includes a robust action plan aimed at guaranteeing transparency and fairness among the 12 distributors operating in Algeria, in addition to the state-owned Naftal, which has a leading position in the market.

One of the main features of this regulatory reform is the organization of fuel distribution stations based on regional needs. The decree specifies certain criteria and conditions that will guide the establishment and operation of these stations, ensuring a more equitable distribution system across the country.

In addition to the national focus, Nedil emphasized the ARH’s commitment to promoting Algeria as an attractive investment destination for both local and international investors. He highlighted that several global energy giants, including ExxonMobil and Chevron (USA) and Sinopac (China), have expressed interest in investing in Algeria. These companies are reportedly in advanced discussions with Sonatrach, the state-owned oil and gas company, signaling positive prospects for foreign investment in Algeria’s energy sector.

The regulatory authority’s efforts to enhance Algeria’s energy sector have not gone unnoticed internationally. During a recent international energy regulators’ conference held in Brussels, ARH was elected as vice-president of the Mediterranean Energy Regulators Association (MEDREG). This recognition further solidifies Algeria’s growing influence in the Mediterranean energy landscape. Nedil underscored that this election is a direct result of Algeria’s continued efforts to enhance its regulatory capabilities, promote investment, and position itself as a key player in regional energy governance.

With this victory, Algeria has strengthened its strategic position within the energy sector, reaffirming its role as a founding member of MEDREG. The election to this high-ranking position is a clear sign of the increasing international recognition of Algeria’s energy expertise, reflecting its growing influence and contribution to shaping energy policy in the Mediterranean region.

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