Insight

What next for Algeria's burgeoning gas market?

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Algeria’s sales gas production has increased by 25% over the last four years. Increases have been driven by reducing gas volumes reinjected to support liquids production and new greenfield developments, including in Algeria’s frontier southwest. International Oil Company (IOC) led Phase 1 projects in the southwest have proven challenging, due to technical complexities associated with tight reservoirs: low flow rates, high CO2 and high costs. Sonatrach, with 100% equity, is advancing a second Phase of development in these projects despite the downside risk. Some new projects will add incremental growth, potentially increasing supply to 120 bcm by 2027. But Algeria needs more new sources of gas to offset declining production from legacy fields, including the ageing Hassi R’Mel, which still accounts for around half of all sales volumes.

Table of contents

    • Algeria rejuvenates its gas sector
    • OPEC quotas allow Algeria to optimise gas sales
    • Long-stalled developments come onstream – can Phase 2 deliver?
    • Tin Fouye Tabankort and El Assel to supplement Phase 2 projects
    • Reliance on Hassi R’Mel to continue
    • Italy: Algerian piped gas is well positioned, but must respond to mounting competition and price pressure
    • Spain: Demand for baseload, competitively priced Algerian piped gas remains strong
    • Algeria’s upstream corporate landscape likely to diversify significantly in 2025

Tables and charts

This report includes 19 images and tables including:

  • Gross gas and oil production*
  • Sales gas by main field*
  • Algeria's main gas fields and gas infrastructure
  • Southwest fields production
  • Algerian Market Balance*
  • Historic Algerian gas exports
  • Iberia vs Italy piped export split
  • Italy – Algerian piped supply vs LNG imports and total demand*
  • Iberia – Algerian piped supply vs LNG imports and total demand*
  • MoUs signed by Sonatrach and ALNAFT over last two years
  • MoUs signed by Sonatrach and ALNAFT over last two years
  • Government share and IRRs for onshore model gas field
  • Foreign gas production (2024) and remaining gas resources
  • Algerian upstream capex – Sonatrach vs non-Sonatrach*
  • IRRs for recent gas projects
  • Remaining capex/boe and reserves by year of start up
  • Algerian undeveloped gas field locations
  • Flaring emissions heatmap
  • Flaring intensity and flaring as a % of gross gas production

What's included

This report contains: