• Sonatrach approves 2026 budget and 2026-2030 development plan, details undisclosed

• Rising domestic gas demand strains balance with exports, infrastructure limits flexibility

• Algeria plans major investment to boost gas output, maintain export role

Sonatrach’s general meeting approved the company’s 2026 budget and a development plan covering 2026-2030 last Thursday, state news agency APS reported. The company is yet to disclose details on planned investment levels, production targets or operational priorities.

The approval comes as domestic natural gas consumption continues to rise. Algeria’s Ministry of Energy and Mines said national demand exceeded 45 billion cubic metres in 2023. More than 95% of the country’s electricity is generated from natural gas, according to the International Energy Agency (IEA), underscoring the fuel’s central role in the national energy system.

Algeria remains a key player in the global gas market. Data compiled by OPEC show natural gas exports reached about 49 billion cubic metres in 2024, down from just over 52 billion cubic metres in 2023. Exports of liquefied natural gas (LNG) stood at around 11-12 million tonnes, mainly destined for European markets.

The balance between domestic consumption and exports is constrained by the sector’s capital-intensive structure. According to the IEA, production, transport and liquefaction depend on heavy infrastructure, with investment cycles spanning several years. Such infrastructure creates bottlenecks that limit rapid adjustments between domestic demand and export volumes. In addition, most Algerian gas exports are tied to medium- and long-term contracts, leaving limited volumes available for spot trading.

Algeria aims to raise gas production to around 200 billion cubic metres per year within five years, up from nearly 137 billion cubic metres in 2023, Ecofin Agency reported earlier. To support this objective, the country is also stepping up security measures along its gas pipeline network to safeguard export flows.

Authorities say Algeria is seeking to strengthen its industrial sovereignty in the oil and gas sector. A $60 billion investment programme for 2025-2029 has been announced, with the bulk of spending earmarked for hydrocarbon exploration, transport and processing.

Abdel-Latif Boureima