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Algeria intends to invest $50bn in oil and gas projects over the next four years as part of its strategy to boost production, according to Rachid Hachichi, the chief executive of the national oil and gas company Sonatrach.

Sonatrach will invest $8.8bn in 2024 as part of the four-year investment programme, which extends until the end of 2027, Hachichi told the state-run Qatar News Agency.

Under Algeria’s existing plans, 71% of the funds will be devoted to exploration and production, and 18% will be invested in petrochemicals projects.

As much as 5% will be invested in gas liquefaction and the rest will be invested in expanding the country’s pipeline network.

Hachichi recently announced a project to develop gas fields in the southwest of the country, with a production capacity of 14 million cubic metres a day, distributed across several sites.

The project will be developed across the sites of Hassi Ba Hamou, Hassi Tidjerane and the Tinerkouk field.

Recently published figures have revealed that Algeria’s domestic gas consumption increased by 5% in 2022 compared to 2021.

Domestic consumption used 54% of all gas produced in Algeria over the year, according to the country’s Commission for Renewable Energy & Energy Efficiency (CEREFE).

According to the analysis carried out by the CEREFE, 66% of the country's gas consumption during 2022 was used to meet the needs of households and the tertiary and agricultural sectors.

Trade ties

Algeria has strengthened ties with several countries in recent years to facilitate oil and gas deals.

Sonatrach signed two agreements with state-owned Petroleos de Venezuela earlier this month.

The first memorandum of understanding (MoU) focused on strengthening and promoting cooperation between the two companies in the field of energy, particularly in the exploration and production of hydrocarbons and petrochemicals.

The agreement also covered cooperation on maintenance in the oil and gas industry.

The second MoU was focused on training for workers in the hydrocarbons sector. Under the deal, technicians and engineers from Venezuela will be trained by the Algerian Petroleum Institute under Sonatrach.