Algeria Gate: Algeria is considering exporting LNG to Asia (notably Bangladesh), a historic shift away from its traditional reliance on the European market. Experts see this as a welcome diversification strategy.
Bangladesh, a major Asian importer, is seeking alternative sources after being hard hit by the drop in Qatari deliveries (more than 60% of its supplies), in the context of the Strait of Hormuz crisis. This crisis is pushing Asian countries to diversify their sources away from the Gulf, creating an opportunity for Algeria and other Mediterranean countries, which are perceived as more stable.
Algeria’s strengths
- Significant reserves and liquefaction capacity of 25.5 million tonnes per year.
- Geographic position distant from maritime tensions.
Major constraints
- Current exports historically low (under 10 million tonnes per year).
- Aging fields and liquefaction plants operating at less than 50% of capacity.
- Growing domestic consumption absorbing half of production.
- No surplus production capacity at present.
The success of this Asian pivot depends entirely on Algeria’s ability to accelerate investments, develop fields, and rehabilitate infrastructure in order to close the gap between its reserves and actual production.














