Algeria’s gas gains momentum

Algeria is clearly gaining ground on the European gas market. In 2025, Italian imports of Algerian gas jumped by over 50%, confirming a strong shift in Europe’s supply map.

Despite a slight dip in pipeline flows via Transmed, Algeria still covers nearly one-third of Italy’s gas needs, supported by a sharp rise in LNG deliveries (47 cargoes, +16 year-on-year).

This reflects Europe’s new strategy: balancing stable pipeline gas with flexible LNG to manage price volatility and supply risks, especially as dependence on Russian gas declines. Algeria fits this model well geographically close, cost-competitive, and reliable.

Spain further underlines this trend. Algeria remained Spain’s top gas supplier for the third year in a row, accounting for about 35% of LNG imports in 2025, far ahead of the US. This came as Russian gas deliveries to Spain fell by 44%, highlighting Algeria’s role as a key alternative. With rising Spanish gas demand and strong regasification capacity, Algeria also indirectly supports wider EU energy security.

For Algeria, this momentum is strategic. Backed by Sonatrach, existing pipelines (Transmed, Medgaz), LNG terminals, and new investments, the country aims to raise gas production to 200 billion m³ per year. Beyond short-term gains, this positions Algeria as a long-term pillar of Southern Europe’s energy security, with ambitions to expand into new markets like Germany while consolidating ties with Italy and Spain.