Algeria Aims to Become Major Gas Supplier to Europe

In March, Algerian state-owned gas producer Sonatrach inked a fresh memorandum of understanding (MoU) with Italian energy supplier Eni and Norway’s Equinor to conclude hydrocarbon deals. 

This is just the latest agreement to solidify Algeria’s growing role as a major supplier of gas to European countries. In February, Germany signed its first medium-term contract with Algeria for the delivery of pipeline gas. In January, Sonatrach inked a 10-year gas storage agreement with Britain. 

Russia’s invasion of Ukraine, which lead to a dramatic drop in the flow of Russian natural gas to Europe, has forced the EU to diversify its suppliers.  While LNG imported from the U.S. and elsewhere has partially substituted Russian volumes to Europe, piped flows remain preferred for their flexibility and reliability. 

According to a report by Independent Commodity Intelligence Services, Algeria's exports to Europe surged in 2023, surpassing pre-pandemic levels. Notably, pipeline flows via Italy doubled to 23 billion cubic meters (bcm) in 2023, and those via Spain rose by 38 percent.