Algeria is reinforcing its presence in the global gas market, demonstrating its reliability and strategic importance as a supplier. Recent data indicates a significant surge in natural gas production coupled with a decline in domestic consumption, allowing for increased exports and solidifying Algeria’s position as a key energy provider, particularly to Europe.
According to figures released by the specialized energy platform “Al-Taqaa,” Algeria’s natural gas production reached an impressive 8.36 billion cubic meters in August 2025. This represents a substantial increase of 890 million cubic meters, or approximately 12%, compared to the same period in 2024. This growth underscores the success of Algeria’s national strategy aimed at boosting hydrocarbon production through strategic foreign investment.
A key element of this strategy has been the successful attraction of foreign investment. The signing of partnership agreements with eight international companies at the end of 2024, as part of a licensing round, is proving crucial. These agreements target the development of substantial reserves, estimated at approximately 330 billion cubic meters of non-associated gas, 349 billion cubic meters of associated gas, and 562 million barrels of oil. The injection of foreign expertise and capital is clearly paying dividends, accelerating the pace of exploration and production.
While production has increased, domestic consumption has seen a notable decline. In August 2025, domestic natural gas consumption for electricity generation and heating fell to 1.6 billion cubic meters, a significant drop from the 2.85 billion cubic meters consumed in August of the previous year. This reduction can be attributed to several factors, including improvements in the efficiency of power plants, the increased adoption of alternative energy sources for electricity generation, and stable summer temperatures reducing the demand for heating and cooling.
This shift in the balance between production and domestic consumption has allowed Algeria to increase its export capacity, further strengthening its position in the international market. Data from the Joint Organisations Data Initiative (JODI) shows some fluctuation in Algeria’s gas production throughout 2025. The year began strongly with 9.74 billion cubic meters produced in January. This figure dipped to 7.85 billion cubic meters in May before rebounding in June and August, a testament to the stability of exploration and production activities in the southern fields.
Exports also saw an increase in August, reaching 3.9 billion cubic meters compared to 3.82 billion cubic meters in the same period of 2024. This increase was primarily driven by higher gas flows through pipelines, particularly to Italy and Spain, which accounted for 3.1 billion cubic meters. These established pipeline routes provide a reliable and cost-effective means of transporting Algerian gas to European markets.
However, exports of liquefied natural gas (LNG) experienced a slight decrease, falling to 2.13 million tons in the third quarter of 2025, down from 2.61 million tons in the same period last year. This decline was primarily due to routine maintenance work being carried out at some liquefaction plants. Despite this temporary dip, Algeria remains committed to maintaining and upgrading its LNG infrastructure to ensure its long-term export capabilities.
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Despite the volatility in global markets and fluctuating demand in some regions, Algeria continues to solidify its reputation as one of the most stable suppliers in North Africa. This stability is underpinned by its advanced transportation and liquefaction infrastructure and its strategic partnerships with European countries. The performance in August 2025 reflects Algeria’s commitment to a balanced energy policy that prioritizes increased production, diversified exports, and the fulfillment of contractual obligations, even in a volatile international environment.
Algeria’s commitment to maintaining its position as a reliable energy supplier is further demonstrated by its ongoing investments in new technologies and infrastructure. These investments include projects aimed at improving the efficiency of existing gas fields, developing new gas reserves, and expanding the country’s pipeline network. Furthermore, Algeria is actively exploring opportunities to develop its renewable energy resources, which will help to free up more natural gas for export.
The Algerian government recognizes the importance of the energy sector to the country’s economy and is committed to ensuring its long-term sustainability. This commitment is reflected in the country’s ambitious energy strategy, which aims to increase gas production, diversify energy sources, and promote energy efficiency.
Looking ahead, Algeria is well-positioned to continue playing a significant role in the global gas market. Its vast gas reserves, strategic location, and commitment to reliable supply make it an attractive partner for countries seeking secure and affordable energy sources. As the global demand for natural gas continues to grow, Algeria is poised to benefit from its strong position in the market.
Furthermore, Algeria’s stable political environment and its commitment to upholding its contractual obligations further enhance its attractiveness as a reliable energy partner. In an increasingly uncertain world, Algeria offers a stable and predictable source of energy, which is a valuable asset for its customers.
In conclusion, Algeria’s increased gas production, reduced domestic consumption, and continued investment in infrastructure and technology are all contributing to its strengthened position in the global gas market. The country’s commitment to reliability and sustainability makes it a key player in the global energy landscape, and it is poised to continue playing a significant role in meeting the world’s growing energy needs.
