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Algeria Gate: Algeria exported 4.47 million tons of liquefied natural gas (LNG) during the first half of 2026.

While European demand stayed strong, maintenance work at the Arzew and Skikda liquefaction complexes prevented Sonatrach from fully meeting this demand, resulting in a 6.5% decline compared to the same period in 2025.

The export map remains highly concentrated, with only five countries accounting for more than 90% of Algeria’s total LNG shipments. Turkey and France alone purchased nearly two-thirds of the volume, making Algerian LNG exports heavily dependent on a small number of European markets.

Despite recording one of the weakest first-half performances since 2013, the second quarter showed signs of recovery. Shipments increased to 2.43 million tons (from 2.04 million tons in Q1), and Sonatrach delivered its first direct LNG cargo to Germany in early July.

As the second half of 2026 begins, Algeria faces a clear challenge: improving liquefaction plant readiness, diversifying its customer base, and transforming strong European demand into stable, higher-volume exports.

Increased production not fully reflected in LNG exports

Algeria’s natural gas production continued to grow in early 2026. Output reached 29 billion cubic meters in the first quarter, up 1.14 billion cubic meters from Q1 2025. Production rose further in April by 7.1% year-on-year.

However, this production growth did not translate into higher LNG exports. The main bottleneck lies in the allocation of gas between the domestic market, pipeline exports (Medgas to Spain and Transmed to Italy), and liquefaction plants.

Key point: Higher field production does not automatically mean higher LNG exports unless liquefaction facilities operate at optimal capacity and sufficient feedstock is available.

Maintenance at Arzew and Skikda heavily impacts exports

Scheduled maintenance at the Arzew and Skikda complexes during the first four months of the year significantly reduced available volumes for export. January saw exports fall to just 440,000 tons, among the lowest monthly figures in recent years.

Monthly export performance was as follows:

• January: 440,000 tons
• February: 670,000 tons
• March: 940,000 tons
• April: 690,000 tons
• May: 1.03 million tons (highest in seven months)
• June: 710,000 tons

The large gap between peak and low months (590,000 tons) clearly shows how sensitive Algerian LNG exports are to maintenance schedules and plant availability.

Second quarter signals recovery

Although the overall first-half result was negative, Q2 exports rose 19.1% to 2.43 million tons compared to the first quarter. The year-on-year decline narrowed from 8.5% in Q1 to 4.7% in Q2, indicating gradual improvement in operational capacity.

Algeria loses 1.78 million tons over two years

Comparing multiple years reveals a deeper decline. First-half LNG exports dropped from 6.25 million tons in 2024 to 4.78 million tons in 2025, and further to 4.47 million tons in 2026; a cumulative loss of 1.78 million tons (28.5%).

Two markets buy nearly two-thirds of exports

Export concentration remains very high:

• Turkey: 1.55 million tons (34.7%)
• France: 1.31 million tons (29.3%)

Together, these two markets accounted for nearly 64% of Algeria’s total LNG exports in the first half of 2026.

Italy and Spain drop, UK Rises

• Italy: 520,000 tons (down 14.4%)
• Spain: 300,000 tons (down 50.8%)
• United Kingdom: 350,000 tons (up 29.6%)

The top five markets absorbed 90.2% of all Algerian LNG exports, leaving very little volume for other destinations.

All Algerian LNG shipments headed to Europe

Europe received 100% of Algeria’s LNG exports during the first half of 2026. Proximity, existing infrastructure, and long-term contracts make the European market the natural and most competitive destination.

Strong European demand expected in second half of 2026

Europe is expected to increase LNG imports by around 13% in 2026 to rebuild inventories before winter. Geopolitical risks around the Strait of Hormuz further enhance the strategic value of reliable suppliers like Algeria.

Germany becomes a new market for Algerian LNG

On July 2, 2026, Sonatrach delivered its first direct LNG shipment to Germany at the Wilhelmshaven 1 terminal. This delivery marks an important step in diversifying Algeria’s export destinations beyond traditional Mediterranean buyers.

Liquefaction capacity exists: the challenge is in full exploitation

Sonatrach operates four liquefaction complexes with a total annual capacity of up to 56 million cubic meters. However, actual performance is affected by maintenance, feedstock availability, and operational efficiency.

The real challenge is not capacity, but maximizing uptime and exploitation rates to meet European demand during high-price periods.

Three major tests for the second half of 2026

Algeria enters the second half facing three key tests:

1. Sustaining high availability of liquefaction plants after maintenance.
2. Stabilizing monthly exports at higher levels.
3. Converting the first delivery to Germany into regular, long-term contracts.

The future of Algerian LNG exports will depend on operational improvements and market diversification, not just European demand.

Algeria Gate: Economic relations between Algeria and Germany are set to enter a new phase with President Abdelmadjid Tebboune’s official visit to Berlin on July 16th and 17th, 2026.

The president will be accompanied by a high-level delegation comprising 100 to 150 representatives from Algerian institutions and businesses.

The visit is expected to yield the signing of more than 30 agreements and the announcement of a broad strategic partnership focused on liquefied natural gas, hydrogen, mining, pharmaceuticals, manufacturing industries, and advanced technology.

The trip goes beyond political dialogue. It follows the arrival of the first direct Algerian liquefied natural gas shipment to Germany and occurs as Berlin seeks diversified energy and raw material suppliers, while Algeria aims to attract industrial investments, localize technology, and boost the value-added share of its exports.

Official sthchedule

On Thursday, July 16th, at 2:30 p.m., Federal Chancellor Friedrich Merz will receive President Tebboune at the Federal Chancellery for talks on bilateral relations, energy, the economy, and raw materials. The Algerian president will also hold a meeting with German President Frank-Walter Steinmeier. The two-day program includes an encounter with members of the Algerian community in Germany.

Economic Forum and over 30 agreements

The centerpiece of the visit is the Algerian-German Economic Forum, which will gather government officials, investors, and business leaders from both sides. Expectations are high for the announcement of a strategic partnership and the signing of more than 30 agreements in key sectors.

Priority fields include hydrocarbons, renewable energies, energy transition, pharmaceuticals, manufacturing, and advanced technology. Mining, raw materials, the automotive industry, and industrial digitization are also high on the agenda.

The substantial Algerian economic delegation underscores the visit’s strong investment focus, moving discussions from broad political exchanges to direct company-level negotiations on industrial projects, partnerships, and technology transfer.

Success will ultimately be measured not just by the number of agreements, but by contract values, participating companies, local integration rates, implementation timelines, job creation, and actual production within Algeria. The ability to transform declarations of intent into funded, executable projects will be decisive.

LNG shipment marks a turning point in gas trade

The visit comes shortly after a historic development: Sonatrach delivered the first direct shipment of Algerian liquefied natural gas to Germany on July 2nd, 2026, at the Wilhelmshaven 1 floating import terminal.

The cargo was loaded at the GL2Z liquefaction complex in Bethioua, Oran Province, and transported by the Sonatrach tanker “Tsala”. This operation established a direct commercial route for Algerian gas to Europe’s largest economy.

The shipment is significant because it proves Algeria’s ability to supply Germany directly via LNG, moving beyond its traditional reliance on pipelines to Italy and Spain and shipments to other European ports. It also demonstrates the flexibility of Algeria’s integrated gas system: production, pipelines, liquefaction plants, and fleet, allowing it to target high-demand markets.

For Germany, newly built floating terminals provide fresh opportunities amid reduced Russian supplies and efforts to diversify energy sources and routes.

From one shipment to long-term contracts

While the first delivery is an important milestone, the real shift lies in establishing regular supplies and medium- to long-term contracts between Sonatrach and German buyers.

German sources indicate that the visit will feature declarations of intent to expand Algerian LNG imports, along with cooperation to reduce methane emissions in the oil and gas industry. State Secretaries Jochen Vlaspart (Environment) and Frank Witsel (Economy) are expected to participate in the energy partnership signings.

Negotiations will need to cover volumes, prices, delivery schedules, receiving terminals, contract durations, and guarantees to support long-term planning.

For Algeria, such contracts offer predictability for production and investment in capacity expansion. For Germany, a reliable, geographically close supplier reduces supply risks. Environmental standards, especially methane emissions, will play a growing role in market access.

Methane reduction becomes a trade priority

Germany is supporting Algeria in cutting methane leaks across the production, processing, and transportation chain, aligning with the EU’s stricter controls on emissions from imported energy starting in 2027.

Possible measures include modernizing monitoring systems, deploying leak-detection sensors, digitizing facilities, reducing flaring and venting, and upgrading pipelines and processing units.

These initiatives would reduce waste, improve economic returns, and ensure Algerian gas complies with European requirements. They also open doors for German expertise in environmental technology and digitization, while enabling technology transfer and training for Algerian teams.

Hydrogen: the future of the energy partnership

Low-emission hydrogen forms the long-term pillar of bilateral cooperation. The two countries aim to build a complete value chain from production to export and industrial use.

A bilateral hydrogen working group was established in February 2024 to develop projects, infrastructure, and export routes. This effort ties into the SoutH2 Corridor project, which seeks to link North Africa to southern Germany via existing and upgraded gas infrastructure.

Germany needs hydrogen for hard-to-decarbonize industries such as steel, chemicals, and refining. Algeria sees it as a way to diversify exports and leverage its vast solar potential for renewable-based hydrogen production.

Initial agreements are expected to focus on feasibility studies, site selection, pilot projects, and capacity building before full-scale investment decisions.

Local manufacturing opportunities in hydrogen projects

Beyond energy exports, hydrogen offers industrial opportunities for Algeria. Negotiations could include local production of solar structures, storage systems, piping, and control equipment, along with integration into supply chains and training programs for engineers and technicians.

This aligns with Algeria’s push for greater local value creation and technology transfer in foreign investments.

Over 50 German companies active in Algeria

More than 50 German firms already operate in Algeria in sectors such as agriculture, pharmaceuticals, engineering, machinery, and industrial services. They are attracted by the large market, competitive energy costs, and proximity to Europe.

Algeria seeks German expertise in machinery, automation, engineering services, railways, water desalination, renewables, and industrial digitization. Expanding ties will require addressing administrative hurdles and encouraging German companies to move toward local production and job creation rather than单纯 imports.

 Six German carmakers eyeing the Algerian market

The automotive sector stands out, with six German companies expressing interest following Algeria’s reforms that tie incentives to local production, higher integration rates, supplier development, and technology transfer.

German participation could cover vehicle assembly, components, factory equipment, and digitization, with potential for exports to African markets.

Saïdal-Boehringer Ingelheim deal as a model

In pharmaceuticals, the partnership between Algeria’s Saidal Group and Germany’s Boehringer Ingelheim, which localizes production of lung disease treatments, serves as a model Algeria hopes to replicate. It combines production localization, know-how transfer, and improved medicine availability while supporting reduced imports and stronger pharmaceutical security.

Trade volume reaches 3.5 billion euros

Algerian exports to Germany reached about 3.5 billion euros, rising 11.3% between 2024 and 2025. While hydrocarbons still dominate, manufactured value-added products are increasing. Germany remains a major supplier of industrial machinery, vehicles, chemicals, and technical equipment to Algeria.

Mining and raw materials high on the agenda

Discussions on iron, phosphate, zinc, and related infrastructure will be prominent. Opportunities exist for German involvement in extraction, processing, machinery supply, and low-emission steel production using gas and later renewable hydrogen.

Implementation roadmap

The process is expected to begin during the visit with signed agreements and joint working groups. The second half of 2026 will likely see methane studies, gas contract negotiations, and project presentations. 2027 may bring pilot projects and further contracts, while large-scale hydrogen initiatives will extend into 2030 and beyond.

The real test ahead

President Tebboune’s visit places Algerian-German relations at a critical juncture: translating high-level interest into concrete contracts, factories, and sustained cooperation.

Success will be judged by implemented projects, investment volumes, local production, job creation, integration rates, and the development of genuine joint value chains; moving beyond gas exports and machinery imports toward deeper industrial partnership.

ALGERIA GATE : Algerian industrial group Condor is preparing to export its air conditioners to three major European markets France, Italy, and Spain. Beyond its immediate commercial significance, the move carries a broader message: Algerian-made products are increasingly capable of competing in the European market by meeting the quality and energy-efficiency standards required by some of the world’s most demanding consumers.

A Long Term Export Strategy, Not an Isolated Initiative

This expansion is part of a structured export strategy that Condor has been implementing for years. The company recently signed an agreement with China’s Hisense to establish Africa’s largest air-conditioner manufacturing complex in Bordj Bou Arreridj, with an annual production capacity of two million units, 80% of which will be destined for export.

Italy is already among Condor’s 17 export destinations worldwide, making the latest announcement a natural extension of its existing international footprint rather than a first-time market entry.

On a broader scale, Condor accounts for approximately 50% of Algeria’s exports of electrical and electronic appliances, giving this development significance beyond a single company and positioning it as an indicator of the performance of Algeria’s wider manufacturing sector.

The Geopolitical Dimension: Positioning Beyond Trade

The entry of an Algerian-made product into the French market carries symbolism beyond the commercial transaction itself. France Algeria’s longstanding and complex economic partneris becoming not only a traditional supplier of technology but also a destination for Algerian industrial exports. This shift reflects the growing maturity of Algeria’s manufacturing capabilities and reinforces the narrative that economic relations between the two countries are becoming increasingly balanced and diversified.

Meanwhile, Spain and Italy represent two strategic gateways within Condor’s broader ambition to strengthen its presence across the northern Mediterranean. Algeria is already recognized as a reliable energy partner for Southern Europe, and it is now seeking to extend that credibility into the manufacturing and industrial sectors.

Condor’s expansion into these three European markets forms part of Algeria’s broader strategy to diversify exports beyond hydrocarbons and strengthen the international reputation of the “Made in Algeria” label. Ultimately, the success of this initiative will not be measured solely by export volumes, but by its ability to reshape perceptions of Algeria as a competitive industrial player within the Euro-Mediterranean economic landscape.