Algeria is a major gas supplier (both pipe and LNG) to the European market. Since 2008, Algerian exports have fallen year-on-year as upstream production declined and domestic gas demand soared. In 2016, this downward trajectory shifted dramatically with exports growing 27% on 2015 levels. On-going work at Hassi R'Mel and new projects in the southwest will support this level of export through the mid-term and help Algeria to defend its market position in Europe in the face of increased competition from Russia, Norway and US LNG. Long-term however the same challenge of developing new replacement gas supply and attracting outside investment remains.