Algeria's gas exports face challenges as European countries seek to boost purchases, but domestic demand and production constraints complicate the outlook.
Hydrocarbons in Algeria's economy
Hydrocarbons are a major part of Algeria's economy, contributing about 13% to its gross domestic product and 83% of its exports. The country's economic stability is closely tied to the performance of its oil and gas sector.Czech Republic seeks to double gas imports
The Czech Republic is aiming to double the amount of gas it imports from Algeria, from 200 to 400 million cubic meters annually. This goal was discussed during meetings between Czech and Algerian officials in late October.Existing gas supply contract
A gas supply agreement between the Czech energy company ČEZ and the Algerian state-owned firm Sonatrach was signed in 2024 and extended for an additional year in 2025. Algerian gas is transported to the Czech Republic via a pipeline that connects Algeria to Italy.European interest in Algerian gas
The Czech Republic is not the only European country looking to increase its imports of Algerian gas. Germany signed a contract with Sonatrach in July 2026 for increased deliveries starting in 2027, though the exact volume was not specified.Spain explores gas flow increases
In Spain, discussions have taken place about increasing gas flows from Algeria by up to 10% through the Medgaz pipeline. According to Reuters, an increase of about 1 billion cubic meters per year could be technically possible.Italy seeks to boost cooperation
Italy has also shown interest in increasing its gas imports from Algeria. During a visit to Algiers, Italian Prime Minister Giorgia Meloni emphasized stronger cooperation between the Italian energy company Eni and Sonatrach, especially in offshore exploration and shale gas.Algerian gas revenues decline
Algerian gas revenues have declined in recent years, falling from $16.4 billion in 2023 to $13.04 billion in 2024. This decline is partly due to lower international natural gas prices.Challenges in increasing gas exports
Algerian gas exports have decreased slightly in recent years, with total exports reaching 45.7 billion cubic meters in February 2026, compared to 49.29 billion in 2024. LNG shipments also dropped by 18% year-on-year to 9.54 million tons.Algeria's investment in hydrocarbons
To strengthen its oil and gas sector, Algeria has announced a $71.6 billion investment program in hydrocarbons by 2030, with $52 billion allocated to exploration and production. This aims to boost production capacity and meet growing domestic demand.Rising domestic gas consumption
Domestic gas consumption in Algeria has been increasing, reaching 57.27 billion cubic meters in 2025, a year-on-year increase of 8.9%. About 53% of the gas produced between January and July 2026 was used domestically.
