• Algeria holds an estimated 700 trillion cubic feet of risk-free shale gas reserves, among the largest globally.
• ALNAFT plans to relaunch exploration licensing in early 2026 amid a strategic pivot toward non-conventional resources.
• Sonatrach views shale development as essential to offset the decline of mature gas fields such as Hassi R’mel and In Salah.

Algeria is turning to shale gas as a key pillar of its new energy strategy, seeking to counter declining output from its aging conventional fields and secure long-term supply to Europe.

At the African Energy Week last week, Samir Bekhti, head of the National Agency for Hydrocarbons (ALNAFT), confirmed that the country is refocusing on non-conventional resources to “unlock the full potential of national reserves and revitalize production.”

This pivot comes as global gas flows realign following Russia’s invasion of Ukraine, with Algeria aiming to reinforce its reputation as a reliable energy supplier to Europe.

According to ALNAFT, Algeria holds over 700 trillion cubic feet of technically recoverable shale gas, one of the largest reserves worldwide. Authorities had planned to begin production as early as 2022, backed by $70 billion in investment over two decades, but the initiative stalled due to technical, environmental, and social challenges.

A new exploration licensing round is scheduled for the first half of 2026, although it remains unclear whether shale permits will be included.

State-owned energy company Sonatrach sees shale gas as vital to compensating for the depletion of major fields such as Hassi R’mel, In Salah, and Illizi, while sustaining export volumes to Europe.

However, shale extraction remains technically demanding and capital-intensive, requiring significant water use in a semi-arid country. The government faces the challenge of aligning profitability with environmental and social acceptance, while building local drilling and processing capabilities.

If successful, Algeria’s shale push could rejuvenate its gas industry and strengthen its export profile. Yet analysts note that success will hinge on attracting foreign technology partners, adjusting fiscal frameworks, and stabilizing the investment climate to reduce operational risks.

This article was initially published in French by Olivier de Souza

Adapted in English by Ange Jason Quenum