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Giant natural gas reserves, strategic position in the Mediterranean, and expansion into European markets have transformed Algeria into a key player in global energy security amid the reduction of dependence on Russian gas and the international competition for new energy suppliers.
The European search for alternative energy suppliers has elevated Algeria’s strategic importance since the invasion of Ukraine in 2022, mainly due to the country’s ability to quickly increase the supply of natural gas to the continent through pipelines and LNG shipments.
With about 4.5 trillion m³ of proven natural gas reserves, Algerian territory boasts a privileged location in the Mediterranean, extensive energy infrastructure, and direct connection to southern Europe, factors that have increased its relevance in international sector negotiations.
Besides being the largest country in Africa by land area, Algeria heavily depends on the export of hydrocarbons, as oil and gas represent approximately 90% of external sales and support a significant portion of the government’s fiscal revenues.
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Algeria expands influence in the European gas market
As European countries accelerated the reduction of dependence on Russian gas, Algeria began to occupy a significant space in strategic markets such as Spain and Italy, benefiting from geographical proximity and an already established energy export structure.
In this scenario, the combination of operational pipelines and the capacity to send liquefied natural gas strengthened Algeria’s presence in the European continent, especially during periods of greater instability in international energy supply.
In Spain, for example, fuel from Algeria regained a prominent position, with data from Enagás showing a share of over 29% of Spanish gas imports in the first months of 2026.
The relationship with Madrid primarily involves Medgaz, a submarine pipeline that directly connects Algeria to Spain.
The route gained importance after the interruption of the Maghreb-Europe pipeline, which crossed Morocco, amid the deterioration of diplomatic relations between Algiers and Rabat.
Sonatrach dominates exports and billion-dollar contracts
Responsible for most of the production, transportation, and exports of hydrocarbons, the state-owned Sonatrach plays a decisive role in the country’s economic policy and international negotiations involving energy security.
While this structure facilitates long-term contracts with major European buyers, it also keeps the Algerian economy highly dependent on global fluctuations in oil and gas prices.
Among the main agreements in effect is the partnership with the Spanish company Naturgy, which provides for the supply of about 5 billion m³ of gas per year to the European market.
In March 2026, authorities from both countries discussed increasing the volumes sent via the Medgaz route, amid instability in global energy markets.
Italy also deepened its relationship with Algeria after reducing purchases of Russian gas.
The TransMed pipeline, which crosses Tunisia and the Mediterranean, has transformed the North African country into one of Italy’s main suppliers and reinforced Rome’s strategy to diversify its sources.
Turkey wants to transform partnership with Algeria into an energy corridor
In recent months, Turkey has also intensified negotiations to expand the LNG partnership with Algeria before the current contract ends, scheduled for September 2027.
According to Turkish Energy Minister Alparslan Bayraktar, part of the received fuel could be regasified at Turkish terminals and later sent to Southeast Europe, including markets like Bulgaria.
With this strategy, Ankara aims to consolidate its position as a regional energy corridor between Asia, the Middle East, and Europe, using Algerian gas as an important piece of this geopolitical plan.
For Algeria, opening this route would expand its presence in European markets beyond the traditional partners of the western Mediterranean.
Investments in oil and LNG advance in North Africa
Alongside international supply contracts, the Algerian government is trying to increase investments to maintain the growth of energy production and expand the sector’s operational capacity in the coming years.
In April 2026, the country’s authorities launched a new licensing round involving seven oil and gas exploration blocks, reinforcing the strategy of attracting foreign partners for long-term projects.
In May 2026, Sonatrach signed an engineering, construction, and commissioning contract aimed at the second phase of the Hassi Bir Rekaiz field, located in the southern region of Algerian territory.
The agreement, valued at about US$ 1.1 billion, involves a consortium led by the Egyptian company Petrojet with participation from the Italian company Arkad.
Algeria is also seeking to expand its liquefaction capacity to compete in the global LNG market, currently dominated by suppliers such as the United States, Qatar, and Australia.
This front is important because it allows selling gas to destinations not connected by pipelines.
The Algerian advance occurs in a scenario of strong competition for energy security.
With the decline of Russian flows to Europe and instability in other producing regions, countries close to the European market have gained economic and diplomatic relevance.
Even so, the weight of oil and gas creates a structural dependency.
Public revenue, exports, and the State’s investment capacity remain linked to the performance of hydrocarbons, which keeps Algeria exposed to price shocks and changes in global demand.
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