Algeria is set to strengthen its position in the global energy market with several major projects scheduled for completion by 2025. These developments – spanning natural gas, electricity and renewable energy – will enhance Algeria’s energy exports to Europe and expand its domestic capacity.
Hassi R’Mel Gas Boosting Project
The Hassi R’Mel gas field, one of the largest in the world, is central to a $2.3 billion project designed to optimize gas flow efficiency to Europe. Led by engineering companies Maire Tecnimont and Baker Hughes, the project will involve the construction of three gas boosting stations and an upgrade to the gas field’s gathering system. Expected to be completed by 2027, the project will deliver 188 million standard cubic meters of natural gas per day, ensuring a reliable flow of energy from Algeria to Italy and beyond.
Berkine Basin Gas Development
The Berkine Basin is set for a production boost through a collaboration with gas industry corporation Gazprom. The development will involve the drilling of 24 new wells and the establishment of additional gas processing facilities. First gas production is expected by 2025, positioning Algeria to increase gas exports amid anticipated demand growth in Europe.
Submarine Electricity Cable with Italy
In a move to strengthen energy ties with Europe, Algeria and Italy are collaborating on a submarine electricity cable project. This cable will facilitate the export of electricity generated from both natural gas and renewable energy sources in Algeria. The project is part of a broader strategy to integrate renewable energy into Algeria’s energy exports, enhancing energy security for Italy and neighbouring countries.
SoutH2 Corridor Green Hydrogen Project
The SoutH2 Corridor project is a landmark initiative aimed at transporting 4 million tons of green hydrogen annually to Europe by 2040. Algeria plans to leverage its renewable energy potential to meet Europe’s growing hydrogen demand, using both repurposed gas infrastructure and new facilities. This project aligns with both Algeria and Europe’s climate goals and is a critical component of Algeria’s broader strategy to become a key player in the global green hydrogen market.
Combined Cycle Power Plants: Biskra and Bellara
Algeria’s electricity generation capacity is set to grow with the construction of two major combined cycle power plants: Biskra and Bellara. Both plants, being developed by Algeria’s state-owned Sonelgaz, will each generate 1,340 MW. Both projects are expected to start operations in 2025 and are expected to enhance Algeria’s power generation infrastructure while supporting energy security and fuelling the country’s economic growth.
