Algeria near to signing major gas deal with two U.S. energy giants

Algeria is nearing a landmark agreement with Exxon Mobil and Chevron to develop its vast gas reserves, including shale, for the first time, Bloomberg reports.

According to Samir Bekhti, head of Algeria’s energy regulator Alnaft, technical terms are mostly settled, while commercial details are close to conclusion. He said the entry of two U.S. energy giants “sends a strong signal” about Algeria’s potential.

Algeria boasts the world’s third-largest recoverable shale reserves, behind China and Argentina, and ahead of the U.S., according to the U.S. Energy Information Administration. Its proximity to Europe and existing pipeline connections give it an edge over distant gas exporters like Qatar. Officials hope to replicate America’s shale boom, which transformed the U.S. into a major exporter.

Bekhti said Algeria could progress faster than the U.S., thanks to existing infrastructure, but acknowledged challenges, including cost, water use, and environmental concerns. After years of underinvestment, Algiers is now positioning itself as a key supplier to Europe seeking alternatives to Russian gas.

Chevron noted Algeria’s “world-class petroleum system” and highlighted opportunities for collaboration, while Exxon reaffirmed its commitment to unlocking unconventional resources with state-run Sonatrach.