Algeria Accelerates Efforts to Ensure Energy Security

In recent years, energy security has emerged as one of the most critical national, regional, and international security issues. The Russian-Ukrainian war and the ensuing global energy crisis have underscored its paramount importance, prompting nations worldwide to prioritize their energy security.

As an energy-rich country, Algeria heavily relies on its energy sector to maintain economic stability. Consequently, the nation has signed numerous agreements with global companies specializing in oil and gas exploration.

Algerian Energy Minister Mohamed Arkab has emphasized his sector’s commitment to developing a national energy model that provides a forward-looking vision for both energy security and transformation. This vision focuses on transitioning to renewable energies within the energy mix and enhancing efficiency in high-consumption sectors such as housing, transportation, and industry.

Minister Arkab explained that analyzing the outcomes of this energy model would facilitate the creation of a medium- and long-term roadmap aimed at ensuring energy security. This roadmap will also identify the most suitable approach for a smooth energy transition, considering all natural resources and national infrastructure while incorporating innovative solutions for energy efficiency.

Furthermore, the minister highlighted the “immense” importance his sector places on advancing clean hydrogen technology. He noted the development of a comprehensive action plan, including establishing appropriate regulatory frameworks, fostering human capital, and promoting international cooperation for technology transfer.

Signing Agreements with Global Hydrocarbon Companies

To achieve energy security, the Algerian Ministry of Energy has heavily invested in natural gas exploration, development, processing, transport, and marketing. In recent years, the state-owned Sonatrach Group and Italy’s Eni have signed multiple hydrocarbon contracts worth billions of dollars, alongside a strategic agreement on energy transition.

Additionally, Algerian companies Sonelgaz and Sonatrach signed a memorandum of understanding with Italy’s Eni to conduct joint studies on a project linking Algeria’s and Italy’s electricity grids via an undersea cable to supply power to Italian markets.

Minister Arkab stated that Algeria’s substantial natural gas resources, strategic geographical location, significant infrastructure across the value chain, and advantageous position in global markets equip it to ensure its own energy security and contribute to global demand by exporting large volumes through pipelines and liquefied natural gas (LNG) to various regions of the world.

The Critical Role of the Trans-Saharan Gas Pipeline

The Trans-Saharan Gas Pipeline project, which passes through Algeria, is crucial for long-term energy security. Recently, Minister Arkab met with top officials in Niger to discuss the project’s regional, African, and international significance and its role in socio-economic development. According to the Algerian Ministry of Energy, only 100 kilometers remain to be constructed in Nigeria, 1,000 kilometers in Niger, and 700 kilometers in Algeria, totaling 1,800 kilometers out of the 4,000-kilometer pipeline.

Green Hydrogen Production: Algeria’s Future Energy Security

Continuing the pursuit of energy security, Minister Arkab revealed preparations for a pilot project between Algeria and Germany to produce green hydrogen in Arzew (Oran). This initiative is part of a broader bilateral collaboration in renewable energies, hydrogen development, and the Southern Hydrogen Corridor (Corridor Sud H2).

Minister Arkab made this announcement following discussions with German Vice Chancellor and Minister for Economic Affairs and Climate Protection, Robert Habeck, during the signing of several agreements and a roundtable focused on mutual interests, including renewable energies and hydrogen development.

In this context, the minister explained that a collaborative framework has been established between Algeria and the German government to develop hydrogen technology. This initiative involves coordinated technical teams from Sonatrach and German companies to explore avenues for hydrogen development in Algeria. The first step is the implementation of a pilot project to produce green hydrogen at Sonatrach’s site in Arzew, located in Oran province, with a capacity of 50 MW. This project is supported by a 20 million euro contribution from the German government.

According to the minister, this project marks the beginning of cooperation with the German government in advancing hydrogen technology. It will be followed by several other projects aimed at producing hydrogen in Algeria and exporting it to Germany and Europe through the the SoutH2 Corridor. This corridor includes constructing a pipeline to transport hydrogen across the Mediterranean Sea, a proposal currently under study among Germany, Austria, Italy, Tunisia, and Algeria.

Furthermore, the minister highlighted that the European Commission has approved the construction of this pipeline. He emphasized the necessity of intensifying efforts to conduct comprehensive technical and economic studies required for the project’s actual commencement. The goal is to establish a long-term, strategic, win-win partnership.