The Algerian energy sector continues to attract the interest of large multinationals. Latest event to date: the French group Engie has decided to sell its shares in the Touat gas project, located in the Adrar region, to the Thai group PTT. This strategic project, which plays a key role in the production of natural gas in Algeria, is entering a new phase with the participation of a new player.
The Touat gas field, operational since 2019, is one of the most important projects in the Algerian gas sector. Engie held until now 22.1% of shareswhile the Italian Eni in control 42,9 % and the Algerian national society Sonatrach holds 35 %.
According to the specialized platform Mees, as part of this transaction, the Thai group PTT acquired Engie’s shares, marking its entry into this strategic project. PTT, which seeks to diversify its activities and energy assets internationally, sees the Touat field as a low-risk opportunity thanks to its already operational status. This acquisition is part of a long-term strategy to secure stable revenues and increase the group’s gas reserves.
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The transaction, the amount of which has not been communicated, is subject to the approval of the Algerian authorities. It should be finalized by second quarter 2025according to available information.
A strategic project for Algeria
The Touat field is located in a region rich in hydrocarbons and has 1.92 trillion cubic feet of proven natural gas reserves, in addition to 5.4 million barrels of condensate. These resources make it essential infrastructure for Algeria’s energy ambitions, which plans to increase its gas production to meet domestic and international demand.
Currently, the field produces approximately 12 million cubic meters of gas per day. This capacity could increase in the coming years with additional investments to upgrade facilities and maximize extraction.
However, the project also faced major obstacles. Between 2020 and 2022, production was suspended due to technical issues related to mercury contamination of processing facilities. These incidents had slowed down the field’s contribution to Algeria’s energy objectives.
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The revival of the field thanks to ENI
Since the Italian Eni took charge of the operational management of the project in 2023, after buying the shares of Neptune Energy, the Touat field has experienced new dynamics. ENI has invested $4.9 billion in the modernization of infrastructure and the resumption of operations. These efforts made it possible to bring production back to its current level and guarantee better stability of activities.
Eni also plays a key role in strengthening Algeria’s export capabilities, particularly to Europe, a strategic market for natural gas. The Touat field contributes directly to these ambitions, by enabling additional production of 4.5 billion cubic meters of gas since its relaunch.
Growing interest in Algerian gas
Algeria aims to achieve an annual production of 200 billion cubic meters by 2027, half of which will be intended for export. This ambition places projects like that of Touat at the heart of the national strategy to increase revenues from hydrocarbons.
The acquisition by PTT also reflects the growing attractiveness of the Algerian gas sector for foreign investors. With a regulatory framework that is gradually opening up and reforms aimed at improving conditions for international partnerships, Algeria seeks to consolidate its place in the global energy market.
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A transaction with multiple implications
Engie’s decision to sell its shares is part of an overall strategy to rationalize its asset portfolio. The French group now favors projects with lower carbon intensity and better aligned with its strategic priorities.
For PTT, this investment represents an opportunity to establish itself in a region rich in resources while participating in an already profitable project. With rapidly growing global demand for natural gas, particularly in the context of the energy transition, PTT is thus strengthening its positioning in a strategic market.
A new life for the Touat field?
The sale of Engie’s shares to PTT marks an important step in the history of the Touat gas field. With this change of partner, Algeria benefits from a new actor committed to supporting the production and development of the project. This transaction also illustrates the global dynamics of the energy sector, where large groups are adjusting their portfolios to respond to constantly evolving economic and strategic challenges.
The Touat project remains a major asset for Algeria, and the arrival of PTT could help maximize its potential while supporting national energy ambitions.
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