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Markets & Forecasts

Algeria’s gas production faces colossal challenges

Upstream gas projects in Algeria will see further delays if the country fails to boost the competitiveness of its LNG and pipeline gas in the global market Upstream gas projects in Algeria will see further delays if the country fails to boost the competitiveness of its LNG and pipeline gas in the global market.
By Abhishek Kumar 24 June 2019 Middle East & Africa / Exploration & Production 0 34329
The ongoing loss of its export market has significantly hit Algeria’s upstream sector. (Gazprom)

Algeria is trapped in a vicious circle of wanting to produce more gas but struggling to find new customers for it. Unappealing contractual terms offered to upstream players, sharp decline rates at ageing fields and the ongoing political upheaval in the country are also proving detrimental to its oil and gas sector. Oil and gas account for almost 94% of Algeria’s export revenues, which are vital for continued upstream investment by state-owned Sonatrach. However, solving the problem will prove to be an uphill task unless...