Algeria is set to solidify its position as a leading gas producer in Africa, with ambitious plans for increased production and strategic projects aimed at meeting rising global energy demands. The nation anticipates a new era of gas output by 2026, driven by significant investments and a favorable investment climate.
Algeria’s gas production is projected to reach approximately 10 billion cubic feet per day by next year, while oil production is expected to remain stable at around one million barrels per day. This growth is fueled by key development projects, including the Tim Fouye Tabankort South and Ain Aminas 2 initiatives. These projects are designed to unlock additional commercial gas volumes while maintaining overall production stability.
Beyond new developments, Algeria is actively pursuing enhanced production efficiency and a reduced carbon footprint. Efforts include the installation of a solar power plant at the Bir Rebaa North complex, operated by Eni, demonstrating a commitment to sustainable energy practices.
Algeria remains a cornerstone of gas production in North Africa, accounting for approximately 60% of the continent’s output. This significant share is expected to continue through 2030. Recent legislative and institutional reforms have significantly improved the investment environment, exemplified by the 2024 competitive bidding round, which awarded the first exploration licenses in a decade. This reflects the sector’s increased openness and attractiveness to investors.
State-owned Sonatrach continues to play a dominant role, accounting for approximately 75% of liquid production and over 80% of gas production. Exploration activities are primarily focused onshore, particularly in the Hassi Messaoud and Berkine basins, with 14 new discoveries recorded in 2024, including partnerships with companies like Eni.
Looking ahead, while total hydrocarbon production is expected to remain stable at around 3 million barrels of oil equivalent per day over the next five years, Algeria aims to achieve an ambitious target of producing 200 billion cubic meters of gas annually, with half earmarked for export. This strategic goal is designed to support economic growth and fund diversification strategies, further solidifying Algeria’s role as a key player in the regional and global energy landscape.
