Sonatrach Maintains Top African Liquid Reserves Rank

Algeria has maintained its position as Africa's foremost hydrocarbon producer, a distinction it shares with Nigeria, according to the African Energy Chamber's annual report on the continent's energy outlook. The report further identifies Algeria as the third-ranked African nation for both gas and liquid reserves yet to be produced. Notably, Sonatrach, Algeria's national energy company, stands out as the continent's primary holder of liquid reserves among operators and ranks second in gas reserves. In 2024, Algeria's hydrocarbon production reached approximately 3.3 million barrels equivalent of oil per day, almost equally divided between liquids and gas, with crude oil alone accounting for about 1.38 million barrels per day. Projections for 2026 indicate stable oil production around one million barrels daily and a gas flow of approximately 10 billion cubic feet per day.

Algeria is recognized among the top five countries globally for hydrocarbon discoveries, with 14 recorded in 2024, primarily driven by exploration drilling from Sonatrach and Eni in the Hassi Messaoud and Berkine basins. Four Algerian basins—Tilrhemt, Ghadames, Illizi, and Hassi Messaoud—are also listed in continental rankings. Looking ahead, two significant gas developments, Tin Fouyé Tabankort Sud and In Amenas II, are slated to commence production in 2026. The Algerian government has set an ambitious target to achieve an annual gas production of 200 billion cubic meters within five years, half of which is earmarked for export, supported by Germany's plans to expand imports from January 2027.

Complementing its upstream leadership, Sonatrach is advancing its downstream capabilities with the impending launch of a new methyl tert-butyl ether (MTBE) production complex in the Arzew industrial zone, Oran. This strategic industrial investment, valued at approximately $500 million and built by the Chinese consortium CNTIC/LPEC, is designed to have an annual capacity of 200,000 tonnes. The facility's primary objective is to significantly reduce Algeria's reliance on MTBE imports, which currently stand at about 100,000 tonnes annually. With construction now complete, initial production from the plant is anticipated in early 2027, a development that is expected to enable Algeria to transition from an MTBE importer to a net exporter, thereby diversifying its exports and enhancing in-country hydrocarbon transformation.