Nation’s Gas Output Grows 4.2% in First Half

Algeria recorded a 4.2% increase in gas production during the first half of the current year, responding to expanding global and local demand. Gas output reached 54 billion cubic meters in the first quarter, marking the highest level since 2022 and reflecting a rise of 2.2 billion cubic meters compared to the same period of the previous year. This expansion aligns with a comprehensive program aimed at further elevating the country's gas production capabilities.

The national public group Sonatrach has actively pursued the development of significant gas fields since 2023. The year 2024 is particularly crucial, with Sonatrach signing approximately ten upstream gas contracts, representing billions of dollars in investment. Direct agreements have been established with international partners, including Italy's Eni and China's Sinopec, while discussions are underway with major American companies for potential projects in Gourara, Ahnat, and Berkin, regions recognized for substantial unconventional gas reserves.

Future plans include bringing these new fields into production from 2030 and advancing development projects for mature fields to recover billions of cubic meters annually. These initiatives are designed to prepare Algeria's gas industry for a new phase, ensuring the country remains an essential actor in regional and international gas markets. Concurrently, Sonatrach is integrating environmental considerations, adapting its production to new regulations through investments in fugitive gas recovery, methane leak reduction, and connecting its facilities to renewable energy sources, with agreements already in place with Eni, Equinor, and VNG for decarbonization efforts.