As the world shifts toward cleaner energy, resource-rich nations must adapt or risk being left behind. Algeria is taking steps to keep its energy sector strong by maintaining its dominance in oil and gas while investing in renewables to support long-term growth.
That momentum is on display this week in Houston, where U.S. and Algerian energy leaders are gathering for the 2025 Algeria–US Energy Forum. The event highlights deepening cooperation in oil, gas, and renewables, and showcases Algeria’s efforts to attract American investment, streamline regulation, and expand export capacity across both conventional and green energy markets.
By taking an all-of-the-above approach, Algeria is positioning itself as a regional and global energy powerhouse.
At the core of this strategy is Algeria’s robust hydrocarbon sector, which continues to drive economic stability and energy security for the nation and its partners. Algeria holds 12.2 billion barrels of crude oil reserves, making it the third largest in Africa and sixteenth in the world.
Over the next four years, Algeria plans to invest $50 billion in the hydrocarbons industry, which will focus on exploration and expanding liquefied natural gas (LNG) production. To accelerate development, the government launched the “Algeria Bid Round 2024” on October 14, offering six new areas for oil and gas exploration with promising reserves and extensive geological data available to investors.
Algeria’s booming energy industry plays a vital role in Europe’s energy security. As one of the top natural gas exporters to Europe, Algeria’s key gas pipelines—TransMed, which supplies Italy and Medgaz, which delivers gas to Spain —are critical infrastructure. TransMed alone transports more than 24 billion cubic meters of gas annually. In total, Algeria exported more than 50 billion cubic meters of natural gas globally, with a significant portion supplied to European markets.
But that’s not all. Algeria recognizes that maintaining this strength requires a strategic pivot toward renewable energy. The country’s targets are clear: 27% of its electricity will come from renewable sources by 2035.
One component of this transition is Algeria’s solar potential. Algeria’s desert regions receive around 2,500 kilowatt-hours of solar energy per square meter annually, ranking among the highest levels globally. Coupled with 3900 hours of sunlight annually, Algeria is well-positioned to develop large-scale solar projects that can generate significant energy year-round.
To harness this potential, Algeria has launched several solar initiatives. We have launched a 1 gigawatt solar power project, which involves building large solar farms that will provide enough energy to power more than 250,000 homes. Sonatrach, the national oil company, also has initiated off-grid solar projects to provide electricity to remote areas, further expanding the reach of renewable energy across the country.
Algeria is positioning itself as a leading supplier of green hydrogen to Europe, primarily through the proposed SoutH2 Corridor—a pipeline project developed in partnership with VNG (Germany), Verbund (Austria), and Italy’s Snam and SeaCorridor. The country aims to produce over one million tons of green hydrogen annually by 2040, with the goal of meeting 10% of Europe’s projected demand. To reach this target, Algeria is seeking practical, mutually beneficial partnerships across the entire green hydrogen value chain.
Algeria is also addressing energy and water security simultaneously. The government recently invested more than $5 billion in desalinization plants to meet the increasing water demands of the country.
Algeria is expanding its energy-delivery system by building nearly 10,000 kilometers of transmission lines. It plans to add another 24,500 kilometers by 2030.
To attract foreign investment, Algeria created SHAEMS, a state-owned company that serves as a hub for managing renewable energy projects. SHAEMS helps streamline the process for investors and is working with Sonatrach and Sonelgaz to support independent power producers.
Algeria’s strategy of strengthening its hydrocarbon and renewable energy sectors at the same time is a solid foundation for long-term energy security. With continued infrastructure development, strategic partnerships, and a focus on emerging technologies, Algeria is on track to lead on energy production for many years to come and we look forward to seeing American companies walk along with us. Opportunities are here to grab, and Algeria has shown that the world can count on us for energy security.