Algeria's gas production has increased by 4% during the first seven months of 2026, reaching 62.621 billion cubic meters, compared to 60.184 billion cubic meters during the same period last year. This growth is attributed to a strong increase in domestic consumption, particularly in the electricity generation sector. According to data from the Joint Organisations Data Initiative (JODI), Algeria's gas production in July 2026 was 8.612 billion cubic meters, a 3% increase from July 2025.
The increase in domestic gas consumption is largely driven by the electricity generation sector, which consumed 3.208 billion cubic meters of gas in July 2026, accounting for 69% of total consumption. This represents a significant increase from July 2025, when the sector consumed 1.606 billion cubic meters. The rise in electricity demand led to record levels of power consumption, with demand reaching 21.4 thousand megawatts on July 13 and peaking at 21.828 thousand megawatts on August 19.
Algeria's total gas consumption during the first seven months of 2026 was 33.149 billion cubic meters, a 7% increase from the same period in 2025. In contrast, the country's gas exports through pipelines and liquefied natural gas (LNG) decreased by over 5% in July 2026, to 3.764 billion cubic meters, compared to 3.971 billion cubic meters in July 2025.
Despite the decline in gas exports, Algeria's gas production remains strong, with the highest monthly production recorded in January 2026 at 10.437 billion cubic meters. Production levels have fluctuated throughout the year, with 8.946 billion cubic meters produced in February, 9.669 billion cubic meters in March, 8.447 billion cubic meters in April, 8.342 billion cubic meters in May, and 8.168 billion cubic meters in June.
Bangladesh is currently in talks with Algeria to import 10 LNG shipments per year under a short-term contract, as part of efforts to diversify its energy sources away from the Strait of Hormuz. Negotiations are ongoing regarding prices, delivery dates, and supply conditions.
Algeria's gas production and consumption trends are being closely watched, given the country's importance as a gas supplier to Europe and other regions. The country's ability to meet growing domestic demand while maintaining its export commitments will be crucial in the coming months and years.
The growth in Algeria's gas production and consumption has significant implications for the country's energy sector and economy. As the country's gas production continues to rise, it is likely that Algeria will play an increasingly important role in meeting global energy demand.
Key points
- Algeria's gas production increased by 4% to 62.621 billion cubic meters in the first 7 months of 2026.
- Domestic gas consumption hit record levels, driven by a 12.6% increase in July 2026.
- Algeria is in talks with Bangladesh to export 10 LNG shipments per year under a short-term contract.
