Algeria unveils major energy investment plan

The Algerian government has announced a 71.6 billion dollar investment program targeting the upstream hydrocarbons sector, as well as petrochemicals and refining, by 2030. The initiative, designed to address growing domestic demand that risks reducing export levels, was presented by the Minister of Hydrocarbons, Mohamed Arkab, to a parliamentary commission on finance and budget.

Funding breakdown for energy projects

Of the total investment, 52 billion dollars are allocated to upstream activities, while nearly 13 billion dollars are set aside for refining and petrochemical projects. The plan aims to boost primary hydrocarbon production to about 201 million tons of oil equivalent (tep) by 2030, up from 193 million tep in 2026.

Downstream projects and international partnerships

Key projects in the downstream oil sector include a new Hassi Messaoud refinery in southeastern Algeria, a methyl tert-butyl ether (MTBE) production unit, a linear alkylbenzene production unit, and two polypropylene production complexes—one in Arzew, northwest Algeria, and the other in Turkey. Sonatrach, the national oil company, has signed agreements with foreign firms such as Eni (Italy), Pertamina (Indonesia), Repsol (Spain), Sinopec (China), and Occidental Petroleum (United States).

Rising domestic energy consumption

According to data from the platform Attaqa, national natural gas consumption in Algeria reached 57.27 billion cubic meters in 2025, an 8.9 percent increase compared to 2024. Between January and July 2026, the country consumed 33.14 billion cubic meters of gas, with nearly 53 percent of the gas produced during this period used domestically.

International interest in Algerian oil and gas

Algeria's international tender "Algeria Bid Round 2026," covering seven exploration areas, attracted about sixty companies. Twenty-one of them met the conditions to access technical data files and virtual data rooms, which became available in June 2026. The investment program seeks to balance domestic energy needs with export obligations.

Economy reliant on hydrocarbon revenues

Algeria's economy remains heavily dependent on hydrocarbon revenues, which account for more than 80 percent of exports and nearly half of budgetary revenues, according to the World Bank. This reliance underscores the importance of the new investment plan in securing the country's economic stability.