Algeria wants to position itself as an essential supplier of natural gas

Algeria is seeking to position itself as a key supplier of natural gas to European countries seeking to reduce their dependence on Russia, hosting envoys from energy-rich countries for a key summit on Thursday.

For three days, Algeria will host in Algiers, its capital, the leaders of 13 other countries, including Russia , Iran , Qatar and Venezuela , as the industry faces falling oil demand and gas and new competition from renewable energy sources.

The summit will provide participants with the opportunity to coordinate investments and linkages with buyer countries and further develop production capabilities . Officials also indicated that the summit will be an opportunity to showcase Algeria's growing role as a secure and reliable energy supplier .

Algerian President Abdelmajid Tebboune said in a message posted on the summit website that "natural gas is increasingly in demand as a crucial energy source for socio-economic development, being one of the main sources clean and environmentally friendly alternative energy sources .

As European countries try to wean themselves off Russian energy, Algeria has established itself as the continent's second-largest pipeline gas supplier, after Norway . It is the leading gas supplier to Spain and Italy. Algerian state-owned company Sonatrach recently signed an agreement to sell natural gas to German company VNG.

Karim Allam, an oil and gas industry analyst, said the summit would be an opportunity to present gas as "a product of the future" . Algeria “wants to finalize long-term contracts which will ensure security for the future, while seeking to strengthen its status as a credible and serious producing country” .

However, headwinds persist. Despite ambitious plans to increase production by 2030, Algeria has struggled to deliver more gas to Europe at the promised rate. Sonatrach continues to face infrastructure needs, slowing gas demand and new competition from countries like Qatar and the United Arab Emirates.

Algeria's growing population is also expected to increase energy demand, similar to Egypt , the most populous country in the Arab world.

“There is growing concern about the need to balance domestic needs and export commitments ,” said Alberto Rizzi, a researcher at the European Council on Foreign Relations. “And there is a game of who is the last man standing – who can produce at the price, volume and with the least pollution.”

Algeria has taken preliminary steps to invest in renewable energy , particularly hydrogen-based green energy, but it continues to invest heavily in fossil fuels. Oil and gas revenues accounted for 38% of the country's budget between 2016 and 2021, according to World Bank figures .