Algeria will invest $60 billion in its energy sector between 2025 and 2029, with most of the funds going into oil and gas exploration and production.
The country’s Energy and Mines Minister, Mohamed Arkab, said the plan aims to boost upstream development and strengthen national energy security.
Arkab made the announcement on Monday during the opening of the 13th Africa & Mediterranean Energy and Hydrogen Exhibition and Conference (NAPEC 2025) held in Oran.
He stated that about 80% of the investment will be directed towards hydrocarbon exploration and production.
“Natural gas has become a transition fuel and a key part of the global energy equation,” he said.
He explained that Sonatrach, the state owned energy company, is working to cut gas flaring to below 1% by 2030 as part of its environmental strategy.
Focus on oil, gas and petrochemicals
Arkab noted that part of the $60 billion plan would support projects in refining and petrochemicals.
These include the Hassi Messaoud refinery, located about 800 kilometres southeast of Algiers, and new facilities for methanol, clean fuels, and petrochemical products.
He mentioned that investments in these areas are designed to boost value addition within the domestic energy industry and reduce the country’s dependence on imported petroleum products.
The minister said Algeria aims to maximise returns from its natural resources while preparing for long term diversification.
Arkab added that Algeria’s current drive combines the need to meet rising domestic energy demand with the objective of remaining a reliable supplier to global markets.
He explained that the country’s large hydrocarbon reserves, spread across more than 200 oil and gas fields, make it well positioned to sustain production for years.
Expanding cleaner energy and infrastructure
Beyond hydrocarbons, Algeria is seeking to diversify its energy mix by increasing renewable capacity.
Arkab said the government has already launched projects to add 3,200 megawatts of renewable capacity to the national grid in line with its energy transition plan.
“We are committed to the energy transition while maintaining gas as a strategic resource,” he said.
He added that the transition would be gradual, ensuring that Algeria continues to meet both local consumption needs and export obligations.
On his part, Sonatrach Chief Executive Officer, Rachid Hachichi, said the company’s five year investment plan aims to increase production, modernise existing infrastructure, and expand oil and gas facilities.
“This ambitious programme shows our firm commitment to ensuring Algeria’s energy security and contributing to the global energy transition,” Hachichi said.
He noted that part of the investment would also be channelled towards developing green hydrogen, solar power, and low carbon technologies.
