• Algeria to build two pipelines using local expertise only

• $60B energy plan aims to boost refining, cut imports

• Foreign firms still vital in major oil, gas projects
  

Algerian authorities, promoting a vision of “100% Algerian-built” energy infrastructure at the NAPEC 2025 exhibition in Oran (October 6-8), have announced the imminent launch of two pipeline projects to transport gas and oil in the country’s south.

According to the state-owned pipeline operator, Entreprise Nationale des Canalisations (ENAC), the projects, covering design, procurement, construction, and delivery, will be carried out entirely by Algerian teams using domestic expertise, with completion expected within 30 months.

The initiative forms part of a national strategy to maximize value across the energy chain, from extraction to distribution, while building up local technical and industrial capacity. It follows the government’s announcement of a $60 billion investment plan for 2025–2029, nearly 80% of which is allocated to exploration, transport, and processing, according to the Ministry of Energy and Mines.

In parallel, Sonatrach, the state-owned hydrocarbons company, is leading a separate $7 billion program to boost national refining and petrochemical capacity. The goal is to raise the share of locally processed hydrocarbons from 32% to 50% by 2030, thereby creating greater added value within the country.

Political Will Meets Industrial Reality

Progress toward this industrial ambition has been gradual. The shift to genuine energy sovereignty remains incomplete, as reflected in ongoing projects and recently awarded contracts.

In July 2025, Sonatrach awarded China’s Jereh Oil & Gas Engineering a contract worth about $855 million to build a compression station and new gas pipelines at the Rhourde Nouss field in the southeast. That same month, Sonatrach signed a $1.35 billion deal with Italy’s Eni for the development of the Zemoul El Kbar field in the Berkine Basin. Earlier, in February 2025, Sonatrach concluded an agreement of similar value with Sinopec for exploration and development work in the Hassi Berkane North perimeter.

These operations highlight Algeria’s continued reliance on international cooperation in developing its energy sector. Despite political efforts to expand national participation, the technical execution of many large-scale projects still depends on foreign companies with expertise in construction, engineering, and oilfield equipment.

A report published in August 2025 by the Canadian Trade Commissioner Service noted that Algeria’s hydrocarbons industry continues to depend heavily on imported technology and know-how, especially in advanced drilling, industrial maintenance, and facility repair. The report added that the country is actively pursuing knowledge-transfer initiatives to boost local participation in exploration and production activities.

Abdel-Latif Boureima