Energy in Algeria encompasses the production, consumption, and import of energy. As of 2009, the primary energy use in Algeria was 462 TWh, with a per capita consumption of 13 TWh.IEA Key energy statistics 2011 Page: Country specific indicator numbers from page 48 Algeria is a significant producer and exporter of oil and gas and has been a member of the Organization of the Petroleum Exporting Countries (OPEC) since 1969. It also participates in the OPEC+ agreement, collaborating with non-OPEC oil-producing nations. Historically, the country has relied heavily on fossil fuels, which are heavily subsidized and constitute the majority of its energy consumption. In response to global energy trends, Algeria updated its Renewable Energy and Energy Efficiency Development Plan in 2015, aiming for significant advancements by 2030. This plan promotes the deployment of large-scale renewable technologies, such as solar photovoltaic systems and onshore wind installations, supported by various incentive measures.
In a strategic move to further develop its energy sector, the Algerian government announced in 2023 plans to offer at least 10 exploration blocks in its first upstream bidding round since 2014, signaling a proactive approach to expanding its oil and gas exploration efforts. Complementing this initiative, Algeria has intensified its exploration efforts, resulting in eight significant discoveries this year alone. The country aims to increase its natural gas production from the current 137 billion cubic meters (Bcm) to 200 Bcm per year in the short to medium term. As of 2024, Algeria is producing approximately 900,000 barrels of oil per day, aligning with its OPEC+ production target. Amid ongoing reviews of crude oil output capacities by OPEC+, Algeria has confidently projected that it will reach a production capacity of 1.155 million barrels per day by 2025.
Overview Energy in AlgeriaIEA Key World Energy Statistics Statistics 2015 , 2014 (2012R as in November 2015 + 2012 as in March 2014 is comparable to previous years statistical calculation criteria, 2013 , 2012 , 2011 , 2010 , 2009 , 2006 IEA October, crude oil p.11, coal p. 13 gas p. 15 Capita Prim. energy Production Export Electricity CO2-emission Million TWh TWh TWh TWh Mt 2004 32.4 383 1,927 1,539 26.3 77.8 2007 33.9 429 1,911 1,482 30.6 85.7 2008 34.4 431 1,885 1,439 32.9 88.1 2009 23.5 462 1,771 1,299 44.6 92.5 2010 35.47 470 1,751 1,268 36.498.6 2012 35.98 487 1,696 1,201 41.2 103,9 2012R 38.48 539 1,672 1,131 46.3 114.4 2013 39.21 553 1,601 1,037 48.8 113.9 Change 2004-10 9.6% 22.7% -9.2% -17.6% 38.5% 26.6% Mtoe = 11.63 TWh 2012R = CO2 calculation criteria changed, numbers updated
Natural gas In 2023, Algeria had 159 trillion cubic feet (Tcf) of proven natural gas reserves. Between 2012 and 2021, annual dry natural gas production averaged 3.2 Tcf, while consumption averaged 1.5 Tcf. Despite a production drop in 2020 due to the COVID-19 pandemic's impact on economic activities, production rebounded to a record 3.6 Tcf in 2021. According to the Middle East Economic Survey, this increase was driven by upstream investments leading to new project startups and expansions, notably at the Hassi R’Mel field. Additionally, a decreased need for gas reinjection at oil fields allowed more natural gas to be available for domestic use and export. +Natural gas Production 2011-2021 (billion cubic metres)201120122013201420152016201720182019202020212022202379.678.479.380.281.491.493.093.887.081.5100.897.6101.5 Historically, Algeria has been a significant player in the global natural gas market. In 2009, it was the fifth-largest exporter of natural gas, with a net export of 55 billion cubic meters (bcm), trailing behind Russia (169 bcm), Norway (100 bcm), Canada (76 bcm), and Qatar (67 bcm). That year, Algeria was also ranked as the seventh-largest natural gas producer globally, producing 81 bcm, with the top producers being the USA (594 bcm), Russia (589 bcm), and Canada (159 bcm).By 2021, Algeria's role in the natural gas sector had continued to grow. Its domestic production of natural gas reached 3,734,001 terajoules (TJ), a 28% increase from previous years. This escalation in production positioned Algeria as the second-largest supplier of natural gas in Africa, with a total supply of 1,775,215 TJ, following Egypt. This robust production not only meets domestic energy needs but also bolsters economic stability through exports and the provision of raw materials for key industries such as chemicals and plastics.
Gas pipelines Algeria is a key player in the natural gas export market, primarily serving Europe through three strategic pipelines: the Trans-Mediterranean Pipeline (TransMed), the Medgaz, and the Maghreb-Europe (MEG) pipeline. The increased capacity of the Medgaz pipeline at the end of 2021 significantly improved its delivery capabilities to Spain. Despite encountering temporary disruptions in 2021 due to political tensions that affected the MEG pipeline, normal operations resumed in 2022 with an unconventional reversal, enabling Spain to export gas to Morocco. Following the geopolitical shifts caused by Russia's invasion of Ukraine, Algeria has increased its role as a crucial supplier of natural gas to Europe, now accounting for about 14% of the European Union’s total imports of pipeline gas and LNG. Additionally, Algeria is actively considering future pipeline projects like the Trans-Saharan Gas Pipeline, aimed at connecting Nigeria to European markets through Algeria, and the GALSI pipeline, which could potentially be utilized for transporting green hydrogen to Italy. The Trans-Mediterranean Pipeline (TransMed) is a natural gas pipeline from Algeria via Tunisia to Sicily and Italy constructed in 1978-1983 and 1991-1994. The Maghreb–Europe Gas Pipeline is 1,620 kilometres long natural gas pipeline from Algeria via Morocco to Spain. The Medgaz Pipeline is a natural gas pipeline from Algeria to Spain.
Shale gas Algeria possessed seven basins of undeveloped shale gas by 2020, totaling 3,419 trillion cubic feet. Of this amount, approximately 707 trillion cubic feet are technically recoverable with existing technology, positioning Algeria's recoverable shale gas reserves as the third largest globally, following China and Argentina.
Oil Algeria is a member of OPEC and was the seventh-largest oil products exporter in 2008, accounting for less than 11% of the world's oil exports. That year, the total global exports included 1,952 million tons of crude oil and 411 million tons of oil products. Prominent oil fields in Algeria include Hassi Messaoud, Ourhoud, and Rhourde El Baguel. As of 2022, the country produces approximately one million barrels of crude oil per day. +Oil Production 2011-2021 (kb/d)20112012201320142015201620172018201920202021202220231642153714851589155815771540151114871330135314431408 The country holds an estimated 12.2 billion barrels of proved crude oil reserves as of early 2023, producing high-quality, light, sweet crude oil with very low sulfur content, primarily the Sahara blend from Hassi Messaoud. Despite these high-grade reserves, Algeria faces challenges in attracting new investment to its aging oil fields, leading to difficulties in maintaining production levels.
In response, the Algerian government introduced a hydrocarbons law in December 2019 to attract international investment by reducing taxes and simplifying the legal framework for upstream activities. Additionally, Sonatrach, the state-owned oil company, operates all national refineries and has begun construction on three new refineries—Hassi Messaoud, Biskra, and Tiaret—expected to begin operations within the next five years.
In 2021, Algeria's total oil supply, combining crude and refined products, amounted to 902,997 terajoules (TJ), marking a 125% increase from 2000. This total includes crude oil production, imports, and adjustments for exports and storage. Domestic crude oil production alone accounted for 151.7% of the total crude oil supply in 2021, reflecting a 10% increase over the same period. Additionally, net crude oil exports constituted 34.4% of Algeria's total crude oil production in 2021, with the export share of crude oil comprising 25% of the total energy exports.
Electricity Algeria primarily relies on fossil fuels for energy generation, with nearly 97% of its electricity capacity derived from these sources. The country has seen significant growth in its electricity capacity, which nearly doubled from 2011 to 2020, mainly due to the addition of more efficient natural gas-fired and combined-cycle gas turbine plants. However, Algeria is also aiming to increase its renewable energy capacity to 15 GW by 2035, starting with a solicitation for bids to install 1 GW of solar photovoltaic capacity divided into 11 projects. This move is part of the government's strategy to diversify energy sources and attract foreign investment in renewable energy projects. Natural gas was the predominant source of electricity generation, accounting for 99% of the total electricity production which amounted to 85,390 GWh. This significant dependence on natural gas is echoed in the growth of electricity production, which saw a 236% increase from 2000 to 2021. +Electricity generation 2011–2021 (TWh)201120122013201420152016201720182019202020212022202353.157.459.964.268.871.076.076.781.579.284.391.285.9 Despite this heavy reliance on fossil fuels, electricity trade in Algeria remains limited, with net electricity exports comprising only 1.3% of the total production in 2021, although these exports have increased by 379% since 2000. The electricity sector is a major contributor to carbon dioxide emissions, representing 30% of the country's total energy-related carbon dioxide emissions. On a per-capita basis, electricity consumption in Algeria stood at 1.704 MWh in 2021, showing a 147% increase from 2000, reflecting ongoing economic and population growth. Additionally, the residential sector was the largest consumer of electricity, accounting for 39% of the final electricity consumption, followed by the industrial sector with 34%.
Renewable energy Algeria is focusing on increasing its renewable energy output to 27% by 2035, primarily through solar power, leveraging its high solar irradiance and strong wind speeds. In efforts to conserve its hydrocarbon resources for export, the government has established partnerships with countries like China, Germany, and the United States, centering on enhancing engineering, energy storage, and solar technology capacities. Key projects include a one-gigawatt solar initiative and Sonatrach's use of solar energy for its remote operations. The sector, predominantly managed by state-owned entities such as Sonatrach, Sonelgaz, and the Algerian Energy Company (AEC), also sees significant involvement from international firms, enhancing the local renewable energy infrastructure through investments and collaborative governmental agreements. +Total renewable energy capacity 2014–2024 (MW)20142015201620172018201920202021202220232024266300500593605605585506590601601 As of 2020, modern renewables accounted for just 0.14% of Algeria's final energy consumption, despite a significant increase of 52% in their usage from 2000 to 2020. This growth highlights Algeria's efforts to shift towards cleaner energy sources to reduce carbon dioxide emissions and reliance on imported fossil fuels. Modern renewables in Algeria are primarily utilized for electricity generation and have potential applications in heating and renewable biofuels for transport. However, the country still faces challenges in phasing out traditional biomass uses, which adversely affect health and the environment.