Algeria is advancing a range of key infrastructure projects in 2025, targeting energy, transportation and water security to support national growth and modernization. The country has allocated more than 800 billion Algerian Dinars in recent years to support major water infrastructure projects and plans to register more than 500 infrastructure projects between 2025-2026 as part of a broader national digital transformation strategy. These projects aim to diversify the economy, boost energy production while enhancing public service delivery.
South West Gas Fields Development Project
The South West Gas Fields Development Project – led by national oil company Sonatrach and executed by L&T Hydrocarbon Engineering – involves the construction of three Central Processing Facilities in Adrar province to handle up to 14 million metric standard cubic meters per day of natural gas. These facilities include state-of-the-art systems for gas separation, compression, dehydration and mercury removal, marking a significant boost to Algeria’s natural gas production capacity.
SoutH2 Corridor Green Hydrogen Pipeline
Algeria has ambitions to meet 10% of Europe’s green hydrogen demand by 2040. To achieve this, the country is developing the SoutH2 Corridor, a 3,300 km hydrogen pipeline connecting North Africa with Italy, Germany and Austria. The project will supply green hydrogen to European clusters, featuring an export capacity of 4 million tons per annum. Feasibility studies are underway in collaboration with European energy companies and governments, focusing on repurposing existing infrastructure and building new facilities.
Northern Rail Network
Algeria has launched a 185-km rail project to improve connectivity between its northern cities. The first phase, currently under construction, is a 63-km line linking Tissemsilt and Tiaret in the Northwest. Once completed, the railway will expand to Relizane Province, creating a vital logistics corridor across the northern hills.
Bled El-Habda Integrated Phosphate Project
The Bled El-Habda Integrated Phosphate Project is a $7 billion integrated project that includes phosphate mining and processing, aimed at enhancing Algeria’s non-hydrocarbon exports. This initiative supports the country’s economic diversification efforts. The project – spearheaded by the Algerian Chinese Fertilizer Company – features the development of a phosphate ore mine with reserves of 22 billion tons, as well as the construction of a phosphate production and processing complex in Qued Kebrik. The project is anticipated to create 12,000 jobs during the construction phase and an additional 6,000 direct and 24,000 indirect jobs once operational by 2027.
Enhanced Desalination Program (2025–2030)
Algeria has unveiled a plan to build seven new desalination plants between 2025 and 2030 in Tlemcen, Mostaganem, Tizi Ouzou (two stations), Chlef, Jijel and Skikda. These initiatives aim to increase Algeria’s reliance on desalinated seawater from 18% to 42% of total drinking water supplies, addressing water security amid climate change-induced challenges. Notably, the projects are spearheaded by 100% Algerian expertise, marking progress in national capability and sovereignty over critical water infrastructure.
