Karim Allam, an oil and gas industry analyst, said the summit would provide an opportunity to make the case for gas as “a product of the future.”
Algeria “wants to finalize long-term contracts that will provide security for the future, while seeking to bolster its status as a credible and serious producer country,” he said.
However, headwinds remain. Despite aggressive plans to expand production between now and 2030, Algeria has struggled to deliver more gas to Europe at the pace promised. Sonatrach continues to confront infrastructure needs, slowing demand for gas and new competition from countries like Qatar and the United Arab Emirates.
Algeria’s growing population is also projected to increase energy demands, much like Egypt, the Arab world’s most populous country.
“There’s a growing concern over the necessity to balance domestic needs with the export commitment,” said Alberto Rizzi, a researcher at the European Council on Foreign Relations. “And there’s a game over who the last man standing is — who can produce at the price, volume and with the least pollution.”
Algeria has made preliminary moves to invest in renewable energy, specifically green hydrogen power, but continues to be heavily invested in fossil fuels. Oil and gas revenue accounted 38% of the country’s budget from 2016 to 2021, according to World Bank figures.