Madar (Algiers) - Algeria's natural gas production reached a record 134.3 billion cubic metres in 2025, up from 127.9 billion in 2024, but rising domestic demand continues to limit export capacity, according to the annual report of state hydrocarbons company Sonatrach, Agence Ecofin reported on Saturday, 7 November.
Output was more than 34% above its 2022 level of 100 billion cubic metres, amid growing demand from foreign markets including the European Union, which has set itself the goal of ending Russian gas imports for good by autumn 2027 at the latest. Sonatrach said the increase had consolidated its position among "the main suppliers of natural gas and LNG in the Mediterranean basin".
According to the report, Algeria is now Italy's largest natural gas supplier and Spain's second largest, as well as the second largest supplier of liquefied natural gas to Turkey and Greece.
Natural gas exports, however, stood at 34 billion cubic metres in 2025, down 1% from 2024, according to the figures reported by the agency, while sales on the domestic market rose 7.8% to 57.3 billion cubic metres, driven mainly by demand from state power utility Sonelgaz, as gas is the main fuel for the country's roughly 44 power plants.
Primary hydrocarbon production (crude oil, natural gas and condensates) stood at 193.7 million tonnes of oil equivalent, a marginal rise of 0.03% from the previous year.
To ease the pressure of domestic consumption on exports, the authorities have stepped up investment in the sector, which reached about $7.9 billion in 2025, up 29% from 2024, with exploration and production alone accounting for 69%.
The Algerian government announced on Saturday, 17 October, a $71.6 billion investment programme in upstream oil and gas, petrochemicals and refining through 2030, aimed at raising primary hydrocarbon output to about 201 million tonnes of oil equivalent by then.
Hydrocarbons account for more than 80% of Algeria's exports and nearly half of its budget revenue, according to the World Bank.
