Algerian Gas Demand May Benefit New Producers

Algeria aims to increase gas production to meet rising domestic demand and expand exports to Europe. The country seeks additional investments to improve infrastructure and technical capabilities. This follows a shift in European energy imports away from Russia due to the Ukraine war. Increased output is intended to leverage Algeria's role as a key energy supplier. Spain currently relies on Algerian gas for more than 29% of its imports as of the first two months of this year. The country is currently producing gas at its full capacity following the Russian-Ukrainian war, which led European nations to reduce Russian gas imports. Algeria faces high demand for gas that it may not be able to increase significantly in the short term. Available volumes of unassigned gas could allow new oil and gas producers to enter the market. Francis Perrin, a research associate at the Policy Center for the New South and research director at Lyris, provided this analysis.