Qatar Energy, Power International Expand Algerian Hydrocarbon Investments

Qatar Energy has secured an exploitation license for the Ahara block in 2025, forming a partnership with Sonatrach and Total Énergie, underscoring growing Qatari interest in Algeria's strategic hydrocarbons sector. Concurrently, Power International Holding (PIH) has expressed its intent to develop partnership projects with Sonatrach across the Algerian hydrocarbons market. This interest from PIH has been evident since 2023, spanning the entire hydrocarbons value chain, including both upstream and downstream segments.

Discussions between Algerian and Qatari officials recently progressed, with Algeria's Minister of Hydrocarbons, Mohamed Arkab, receiving Moutaz Al-Khayyat, Chairman of Power International Holding's Board. This meeting focused on strengthening strategic cooperation and partnership between Sonatrach and UCC Holding, a subsidiary of PIH. Key areas of discussion included upstream and downstream oil and gas, transport, refining, and petrochemicals, alongside commercial cooperation in liquefied petroleum gas (LPG) and petroleum products. A specific project for a butene and polybutene production complex was central to these talks.

The increasing engagement from Qatari groups positions Algeria as a significant investment opportunity for international energy actors. This rapprochement is expected to further emphasize investment in the upstream gas sector, attracting foreign interest. The Algerian Minister of Hydrocarbons has encouraged the Qatari group to leverage the opportunities presented by the upcoming Bid Round 2026, scheduled for November, by highlighting the favorable conditions and advantages extended to foreign investors. Algeria's strategic objective is to draw serious investors to support the country's efforts in renewing its hydrocarbon resources and developing its world-class explorable mining potential.