The Maghreba real hydrocarbon reservoir, has considerable deposits of natural gas and oil, particularly in Algeria and in Libya. This underground wealth, discovered during the colonial period, has shaped the region’s economy since independence. Algeria, in particular, is among the world’s leading exporters of natural gas, with proven reserves exceeding 4,500 billion cubic meters, significantly supplying Europe via its transport infrastructure.
A massive investment to maintain competitiveness
Sonatrachthe Algerian hydrocarbon giant, strengthens its position on the European market by injecting 64.3 million euros into the maintenance of the Medgaz gas pipeline in 2023. This 11% increase compared to 2022 reflects the group’s desire to consolidate its infrastructure in the face of the rise of American liquefied natural gas. The funds, deployed in partnership with Naturgy et Blackrockmainly target the inspection and maintenance of turbochargers and turbogenerators, essential components of the network.
An intense commercial battle on the European market
Competition is intensifying between natural gas suppliers in Europe. THE UNITED STATES have temporarily exceeded Algeria as the leading supplier of Spain last November, covering 37% of national demand against 27.6% for Algerian gas. Medgaz51% owned by Sonatrach and 49% by Naturgynevertheless maintains its profitability with a turnover close to 300 million euros, despite a slight drop in profits to 132 million euros in 2023.
A long-term strategy to guarantee supply
The economic model of Medgaz is based on capacity reservation contracts spanning two decades, extendable by 15 years. These agreements, including clauses « ship or pay »guarantee full invoicing for gas transport, regardless of actual use by customers. This approach ensures stable revenues while enabling continued investment in infrastructure, as illustrated by the installation of a new turbocharger increasing capacity by 2 billion cubic meters. The gas pipeline, directly connecting Me Pure in Almeria, remains one of the most economical supply routes to southern Europe, strengthening Algeria’s strategic position in the European energy market.
Belgium
