Algeria set to boost LNG exports amid regional tensions and rising demand

Algeria is preparing to increase its presence in the global liquefied natural gas (LNG) market by enhancing its spot sales, driven by expected demand spikes due to the ongoing war with Iran and potential supply chain disruptions, Attaqa reported on March 2.  

The government is planning to seize price opportunities in the spot market and has operational plans in place to ramp up shipment loadings in the coming days, the outlet said, citing sources familiar with the matter.

Algeria is also considering redirecting LNG shipments to Arab countries if requested, particularly amid concerns about potential shortages amid ongoing military tensions in the region. The strategic move comes amid growing warnings about the impact of the conflict on gas flows through vital maritime routes.

Algeria aims to support its available LNG production and liquefaction capacity by directing additional LNG volumes to the spot market, benefiting from rising prices and increased demand in Asia, Europe, and the Middle East. Plans include redirecting shipments to Egypt, Kuwait, Jordan, and Bahrain if these countries request them to cover any gaps.

Egypt and Jordan, which rely heavily on Israeli gas for a significant portion of their consumption, are vulnerable to supply disruptions. Algeria’s proactive stance in the spot market could provide a critical backup.

Algeria is Africa's largest natural gas producer, with record marketed output of 103bn cubic meters in 2024, with a strategic goal to exceed 200bn cubic meters annually by 2030. While pipeline exports to Europe remain robust, LNG production at the Arzew and Skikda plants has faced recent technical challenges, leading to a 14% drop in exports in late 2024 as the country prioritises domestic power needs.