April 8, 2022

Algeria is the 10th-largest gas producer globally. However, Algeria gas reserves and exports are declining. Algeria exports in 2020 were 3.8 Bcf/d; down from 5.2 Bcf/d in 2016-2017. Recently Algeria’s state-owned oil and gas group Sonatrach announced a major $40 billion investment over a five-year period, but Algeria cannot immediately increase supply.

Sonatrach and  Spain’s Naturgy could increase capacity on Medgaz pipeline to Spain, but Algeria does not have enough gas to fill it. In 2022 Algeria could provide an additional 0.7 bcf/d of gas to Europe, mostly via the Transmed pipeline to Italy.

Egypt is another natural gas producer in Africa however, Egypt does not have pipeline access to Europe and export LNG only, although they are currently running out of LNG export capacity.

Lybia has pipeline to Europe, but it is currently offline due political issues.

Incorrys estimates that although Africa can provide only a modest increase of gas exports to Europe in 2022-2023, African gas supply can grow in the next 3-6 years.

Algerian Gas Supply to Europe

Algeria, Niger, and Nigeria have agreed on constructing the 2,485 miles long Trans-Saharan Gas Pipeline (NIGAL). The pipeline is expected to transport up to 3 bcf/d to Algeria, connecting to the existing network to Europe. Project cost is estimated at $21 billion. For a long time, the security situation in the Sahel region and tensions between the governments of Algeria and Niger did not allow the project to go ahead. However in 2021 Algeria and Niger reopened their border.