Algeria recently hosted the second ministerial meeting of the SoutH2 Corridor project on October 1, 2026, aiming to enhance cooperation with Europe in both traditional and renewable energies. The meeting brought together ministers of energy and representatives from five partner countries. Algeria, a significant player in the global energy market, possesses substantial natural gas reserves, estimated at 2400-2500 billion cubic meters, and 10-12 billion barrels of oil.
The country also has the third-largest shale gas reserve globally, with 19,500 billion cubic meters. However, its exploitation requires social consensus and new techniques to prevent water pollution. Algeria's gas production was 101.84 billion cubic meters in 2025, slightly down from 2024, with domestic consumption accounting for over half of the production, mainly driven by electricity generation, which relies 99% on gas.
In the first seven months of 2026, Algeria's gas production reached 62.6 billion cubic meters, with domestic consumption representing 45-50% of the national production, up 7% from the same period. Before the Ukraine crisis, Europe relied heavily on Russia for 55% of its gas supply. The SoutH2 Corridor project aims to establish Algeria as a major energy hub in the region, enhancing its cooperation with Europe.
According to the Global Gas Outlook 2050 report, Algeria is expected to remain a significant supplier of natural gas to the European market until 2050, through both pipeline exports and liquefied natural gas (LNG). In 2025, Algeria's share of the European gas supply was around 13-14%, with the country representing 17.4-18.2% of Europe's pipeline gas imports.
Algeria exported most of its LNG volumes to Europe and Turkey in 2025, with a total of 13.1 billion cubic meters. The main buyers were Turkey, France, Italy, and Spain, which absorbed 12.6 billion cubic meters. Turkey was Algeria's largest customer for LNG in 2025, accounting for 25% of its LNG supplies.
The Algerian government is seeking significant investment from European partners to increase gas exports and explore new fields. The cooperation will focus on two main axes: increasing gas export volumes to Europe and reducing methane emissions and flaring, making more gas available for trade.
Abderrahmane Mebtoul, a professor of universities and international expert, emphasized the importance of this partnership, which could lead to the extension of existing gas pipelines, such as Medgaz and Transmed. This cooperation aims to establish a solid and effective regional partnership, allowing Algeria to become a major energy player in the region.
Key points
- Algeria aims to strengthen its energy cooperation with Europe through the SoutH2 Corridor project.
- The country is expected to remain a significant supplier of natural gas to Europe until 2050.
- Algeria is seeking European investment to increase its gas exports and explore new fields.
