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Algeria’s natural gas sector continues to achieve record-breaking export figures, driven by the nation’s robust energy sector and a geopolitically favorable environment. According to recent data from the Organization of Arab Petroleum Exporting Countries (OAPEC), Algeria achieved a remarkable surge in liquefied natural gas (LNG) exports in 2023, marking an unprecedented milestone since 2010. This surge has propelled Algeria to the forefront of LNG-exporting countries in Africa, surpassing Nigeria, which held this position for over a decade.
The data reveals a notable 26.1% increase in Algeria’s LNG exports in 2023 compared to 2022, representing the highest growth rate not only in Africa but also among Arab nations. Total Algerian LNG exports reached 12.9 million tons, up from 10.2 million tons the previous year. The OAPEC report further details the quarterly breakdown, indicating that Algerian LNG exports were 2.8 million tons in the first quarter of 2023, rising to 3.3 million tons in the second quarter, reaching 3.6 million tons in the third quarter, and concluding the fourth quarter with 3.2 million tons.
Algeria stands among the seven LNG-exporting nations in Africa, covering a global liquefaction capacity of 15.5%, alongside Nigeria, Egypt, Angola, Cameroon, Mozambique, and Equatorial Guinea. Leveraging its strategic location for both pipeline and maritime transport, Algeria serves as a key supplier to Europe and regional countries.
In 2023, Algeria showcased outstanding performance in LNG exports within the Arab region. While most Arab countries experienced a 1.5% decrease in LNG exports on an annual average, Algeria defied the trend by achieving export growth of over 26%. In contrast, Qatar ended 2023 with a mere 0.2% growth, and the United Arab Emirates with 6.6%.
Algeria’s impressive LNG export performance benefits its contractual customers accustomed to dealing with the country as a reliable supplier. Turkey leads the list of Algeria’s LNG customers, importing 4.3 million tons, surpassing contractual obligations set at 3.2 million tons per year. France follows as the second-largest customer with 3.2 million tons, Italy in third place with 1.8 million tons, Spain in fourth with 1.4 million tons, and China in fifth with 0.4 million tons of Algerian LNG.
Given Algeria’s strategic relations with European partners and its long-standing credibility in LNG and pipeline gas supply, the country has embarked on ambitious production goals to meet rising global and European demand. Algeria’s infrastructure, including liquefaction stations in Skikda and Arzew (Oran) and pipelines connecting to European markets, positions it as a key player.
To meet the growing demand, especially for LNG, Algeria has revised its production targets upwards to reach 30 million tons in the future. This expansion aims not only to satisfy traditional customers but also to tap into new markets across continents. The Algerian government, through the national company Sonatrach, is committed to enhancing the country’s gas production, with a focus on LNG, to reinforce Algeria’s standing in the international market amid stiff competition from global gas players.