Algeria’s Strategy to Meet Its Energy Mix Targets by Integrating Technologies Across the Entire Value Chain
Mr. Choeib Boutamine
July 5, 2025
In an interview with National TV on the sidelines of the Scientific and Technical Days of Sonatrach, Mr. Choeib Boutamine highlighted that over the last seven years, the global energy landscape has undergone profound changes, shaped by major geopolitical and health-related events. The COVID-19 pandemic disrupted global supply chains and energy demand. Soon after, the outbreak of the Russia-Ukraine war had a significant impact on the oil and gas markets.
In the past, Russia supplied about 40% of Europe’s natural gas. With the onset of the conflict, European countries sought alternative suppliers, turning increasingly to the United States and Qatar for liquefied natural gas (LNG) imports.
The energy sector faced further disruptions as the war in Gaza escalated tensions in the Red Sea, prompting Qatar Energy to halt the movement of its LNG vessels through the area for safety reasons. In parallel, growing tensions and sporadic confrontations between Iran and the United States in the Gulf region further impacted global energy security and supply routes.
In this shifting landscape, Algeria has emerged as a significant player by producing around 104 billion cubic meters of marketed natural gas annually and it aims to double this figure in the coming years. To achieve this, Sonatrach, Algeria’s national oil and gas company, has announced plans to invest $50 billion over the next four years, primarily in natural gas development.
Natural gas is a strategic resource in the global energy transition. It emits approximately 50% less carbon dioxide than coal and 20–25% less than oil. This lower carbon footprint makes it a key transitional fuel as the world shifts toward cleaner energy systems. Moreover, natural gas is essential beyond electricity generation—it is a critical feedstock in fertilizers, electricity, and petrochemicals, unlike renewables, which primarily generate electricity.
In Algeria, the deployment of advanced technologies by Sonatrach is expected to improve efficiency, reduce environmental impacts, and decrease gas flaring.
Technologies for carbon capture and storage are also being considered to add further value to Algeria’s energy economy and reduce its carbon intensity.
The use of natural gas in petrochemical industries is particularly promising. It not only adds economic value but also contributes to environmental sustainability by minimizing gas flaring. Technology plays a central role in optimizing both conventional and unconventional gas production. Algeria’s strategic geographic location makes it an attractive destination for energy investment, especially for European markets.
