Algerian state-owned oil and gas company Sonatrach has approved its strategic plan for 2026–2030, following the adoption of its 2026 annual budget by the Ordinary General Assembly. The plan comes amid continued growth in domestic natural gas demand and steady international commercial obligations. No figures regarding annual investment volumes or production targets have been disclosed at this stage.
National demand continues to rise
According to data from the Ministry of Energy and Mines, domestic gas consumption exceeded 45 billion cubic metres in 2023. The International Energy Agency (IEA) reports that more than 95% of Algeria’s electricity production relies on natural gas. This structural dependence increases pressure on Sonatrach to ensure a consistent domestic supply while meeting its export commitments.
Despite a slight drop in export volumes in 2024—around 49 billion cubic metres compared to over 52 billion in 2023—Algeria remains a key supplier to the European market. Liquefied natural gas (LNG) exports totalled between 11 and 12 million tonnes, reinforcing the country’s position in maritime flows.
A strategy backed by massive investment
Authorities have announced a $60bn investment programme for the 2025–2029 period, mainly allocated to the exploration, transport, and processing of hydrocarbons. The national company aims to reach an annual gas production of 200 billion cubic metres within five years, up from approximately 137 billion in 2023, according to figures released by Algerian authorities.
The five-year plan also includes measures to enhance the security of gas infrastructure, particularly pipelines supplying Europe. These facilities, critical to the stability of export flows, are governed by medium- and long-term contracts, limiting flexibility in adjusting supply and demand.
Structural constraints to anticipate in implementation
Algeria’s gas sector infrastructure is based on heavy equipment, with development timelines spanning several years. This configuration limits the capacity for rapid response to fluctuations in demand, whether domestic or international. Spot market volumes remain marginal, increasing the need for Sonatrach to plan long-term investments.
Implementation of the 2026–2030 plan comes during a phase of industrial consolidation, as the government aims to strengthen the country’s energy sovereignty. Coordination between national objectives and international commercial imperatives will be decisive in determining Algeria’s future position in the global gas market.
