Tunisia and Algeria are pushing forward with a major power plant project, with a planned capacity of 1,400 MW. The project, first publicly discussed in May 2026, involves the Société Tunisienne d'Electricité et de Gaz (STEG) and Algeria's Sonelgaz. A delegation from STEG, led by its CEO Fayçal Trifa, met with Algerian officials and Sonelgaz's CEO Mourad Adjal in Algiers on May 24, 2026. The Algerian Ministry of Energy announced a proposal for a combined-cycle power plant on Tunisian territory.
On October 3, 2026, Slah Zouari, head of Tunisia's Ministry of Industry, Mines, and Energy, confirmed that work on the project is ongoing as part of energy cooperation between Tunisia and Algeria. A technical delegation from Tunisia, comprising engineers and experts, is set to travel to Algeria to work on the project's technical characteristics with Algerian counterparts. This development indicates progress in discussions between STEG and Sonelgaz.
Despite the advancements, several key parameters remain undecided. The project's location, cost, financial structure, investment distribution, and implementation timeline have not been publicly established. The capacity of 1,400 MW would significantly impact Tunisia's electrical system, but its actual contribution will only be assessable once the project's details are finalized.
The project's ownership, lead contractor, and primary investor are also unclear. Sources suggest the project is situated in Tunisia and is being discussed within the framework of cooperation between the two countries. However, specifics about the project's structure and stakeholders are still lacking.
The next phase of technical discussions will focus on determining the project's specifics. This stage is crucial in transforming the current exchanges between STEG and Sonelgaz into concrete technical, financial, and industrial decisions. The project's progression will depend on resolving the outstanding issues.
The cooperation between Tunisia and Algeria on this project highlights the importance of regional collaboration in addressing energy needs. The power plant, if realized, would be a significant addition to Tunisia's energy infrastructure. However, the project's success hinges on the two countries reaching a consensus on the project's details.
The ongoing discussions between STEG and Sonelgaz demonstrate a shared interest in advancing the project. With several key aspects still to be determined, the project's future remains uncertain. The involvement of technical delegations and high-level officials suggests a commitment to moving the project forward.
Key points
- The project aims to add 1,400 MW of power to Tunisia's electrical system.
- Technical discussions between STEG and Sonelgaz are ongoing.
- Key project parameters, including location and cost, remain undecided.
