Opinion

Algeria’s gas market outlook: 5 key takeaways

A detailed overview of how Algeria managed to turn its ailing gas sector around.

1 minute read

Wood Mackenzie

Stephen O'Rourke

Research Director, Global Gas

Latest articles by Stephen

View Stephen O'Rourke's full profile

Algeria’s sales gas production has increased by 25% over the last four years, driven by reduced reinjection volumes and new greenfield developments.  But moving forward, the country needs more new gas sources to offset declining production from legacy fields. 

We recently published a report called What next for Algeria's burgeoning gas market?, which examines the outlook for Algeria’s gas production and investment opportunities. Fill out the form to access a PDF with key insights from this report, or read a sample below. 

OPEC quotas enable optimised gas sales

Prior to 2020, Algeria typically reinjected 30-40% of its gross gas production to support its liquids production. Since then, reinjection rates have been around 25%. With OPEC quotas expected to unwind in 2025, Algeria may need to increase its rates to historical levels of 70-80 billion cubic metres (bcm) per annum.  

Despite this, the country is well positioned to increase its reinjection volumes with recent  increases in gross gas output. Algeria’s marked increase in production has materialised mostly through new greenfield developments. 

Over the last year, Sonatrach, the national oil company, has brought two long-delayed developments onstream – Hassi Ba Hamou, and Hassi Mouina – which form Phase 2 of the frontier southwest projects. Together, they’re expected to add 4.5 bcm of sales gas. Other developments, including Ain Tsila, followed.

Get more insight 

Fill out the form to access insights on: 

  • Algeria’s upstream landscape
  • The rapidly growing domestic market and its impact on exports
  • Why Algeria should explore alternative options to maintain its status as a key gas exporter

This complimentary PDF also features a detailed chart on Algerian market balance.