The Algerian gas industry sees a promising year in 2024, marked by both major opportunities and challenges. According to a recent report from the British firm Wood Mackenzie, Algeria is positioned among the five most strategic markets to follow in the MENA region. The call for tenders entitled “Bid Round 2024”, launched by the country, is already attracting keen interest from international players, particularly European ones. According to the Algeria Today website which covered the subject, the report underlines that consortia could emerge, bringing together companies already established on the market and new entrants.
Since 2021, the Algerian gas sector has experienced a significant recoverydriven by a sharply increasing international demand, in particular from the historic partners of theAlgeria. This dynamic should continue thanks to a context marked by tensions on supply, leading to an upward stabilization of gas prices. This renewed interest in Algerian resources is also attributed to Europe’s increased attention to its energy security and improving the investment environment in the country.
The attractiveness factors of “Bid Round 2024”
According to Wood Mackenzieseveral elements make the Algerian call for tenders particularly attractive. Firstly, the Algerian legal framework has proven to be more flexible thanks to the 2019 law on hydrocarbonsdesigned to align with global market requirements. This legislation, put to the test during this round of calls for tenders, offers various partnership modes for foreign investors.
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In addition, Algeria places emphasis on the development of existing perimeters, which allows faster commissioning and accelerated return on investment. This dual objective of increased production and financial profitability meets the expectations of investors. According to the report, this call for tenders will also serve as an indicator to assess the effectiveness of legislative reforms undertaken by the country with a view to stimulate foreign investment.
Furthermore, the figures speak for themselves. Algeria increased its commercial gas volumes by 25 % over the past four years. However, the renewal of resources remains a key issue. Some large companies like Eni et Equinor could sign new licenses to extend their existing projects until 2025, while exploring new opportunities offered by the modernized legal framework.
A region in turmoil
Although Algeria stands out, other countries in the MENA region are also strengthening their investments in hydrocarbons. Libya, Egypt, Iraq, Saudi Arabia, Oman and Kuwait are among the actors to watch in 2025. However, these states will face challenges linked to the increase in engineering and construction costs infrastructure, an obstacle which could influence the pace of development of new projects.
