In recent years, Algeria, a country in North Africa once ruled by France, has made a big splash in Europe’s energy scene. Here’s how this former French colony is now holding the reins on Europe’s gas supply and what that means for the continent.

Algeria’s Rising Power

Back in 2022, as the conflict between Russia and Ukraine was making headlines, Europe faced a tough choice. It needed to find new sources of gas because it was trying to reduce its reliance on Russian energy. One of the countries that Europe started looking at closely was Algeria.

Two years later, Algeria is now the biggest supplier of pipeline gas to the EU, beating out Russia. This African nation is leading the way in natural gas production and exports across Africa. In fact, Algeria has become such a crucial player that European countries are having to make political compromises to keep getting their gas.

Dominating the Gas Market

In June 2024, Spain’s energy company, Enagas, revealed that Algeria had been Spain’s largest gas supplier for six straight months. Algeria is now supplying 36.3% of Spain’s gas, outpacing both the United States and Russia.

Overall, Algeria is Europe’s top gas supplier, especially for Mediterranean countries. In 2023, it surpassed Russia to become the second-largest source of pipeline gas for the EU, just behind Norway. Algeria sends 85% of its gas exports to Europe and is heavily investing in its gas industry to keep this position strong. The country is pouring $50 billion into its gas sector by 2028, with $8.8 billion set aside for 2024 alone.

Economic Growth and Independence

Algeria is also making waves economically. According to the International Monetary Fund (IMF), Algeria is now the third-largest economy in Africa, right after South Africa and Egypt. The country’s GDP has grown significantly, reaching around $266 billion this year. Algerian President Abdelmadjid Tebboune recently announced that Algeria is almost free of foreign debt and is no longer seeking loans from international organizations. Instead, the country is focusing on growing its economy and reducing its reliance on oil and gas.

In 2023, Algeria achieved a milestone by becoming the top exporter of liquefied natural gas (LNG) in Africa, surpassing Nigeria. The country’s LNG exports hit a record high of 13 million tons last year, marking a 26.1% increase from 2022.

Expanding Gas Production

Algeria’s energy sector is booming. In the first half of 2024 alone, the country discovered eight new oil and gas fields. These new sites are expected to boost its gas reserves significantly. Algeria is also planning to increase its annual gas production to 200 billion cubic meters within the next five years.

The country currently sends gas to Europe through two main pipelines: one connecting to Italy via Tunisia and another linking Algeria directly to Spain. There’s also a big project underway to build a new pipeline, the Trans-Saharan pipeline, which will transport gas from Nigeria through Niger to Algeria and then to Europe. Although this project faced delays due to political issues in Niger, it’s expected to resume soon.

Complications and Tensions

While Algeria’s role as a key gas supplier is clear, it’s not without complications. The country’s strained relationship with Morocco has created some disruptions. In 2021, Algeria cut diplomatic ties with Morocco and stopped using a pipeline that passed through Moroccan territory. This decision affected gas supplies to Spain, leading to tensions between Spain and Algeria.

Furthermore, there have been recent issues with gas supplies to Spain due to pipeline damage. Algeria has also threatened to stop supplying gas to certain companies if their ownership changes, adding another layer of uncertainty to Europe’s energy security.

The New Energy Landscape

Algeria’s growing influence on Europe’s energy market highlights a major shift. Once a former French colony, Algeria now has significant power in determining Europe’s energy future. As it continues to strengthen its position, Europe must navigate this new dynamic carefully, balancing energy needs with geopolitical realities.

In short, Algeria’s rise as a major energy player is reshaping the energy landscape in Europe, making it clear that this North African country is now a crucial force in the global energy market.