Algeria has become the third-largest supplier of natural gas to the European Union, delivering 35 billion cubic metres in 2025, according to Modern Diplomacy. The figure represents a 22 % increase over 2023 and cements the country’s position as a critical alternative to Russian pipeline gas. Entrepreneurs in Algiers, Oran and the diaspora are watching the numbers closely: every additional cubic metre pumped through the Medgaz and Trans-Med pipelines generates higher transit fees, royalties and local-content contracts.
Sonatrach, the state-owned energy giant, has signed new 10-year supply agreements with Italy’s Eni, France’s Engie and Germany’s SEFE. The deals include clauses that guarantee 15 % of engineering, construction and maintenance work for Algerian private firms. In 2025 alone, Sonatrach awarded 47 subcontracts worth $1.8 billion to local SMEs, up from 29 contracts in 2022. The contracts span pipeline inspection drones, corrosion-resistant coatings and digital twin software—sectors where Algerian start-ups are now pitching directly to Sonatrach’s procurement teams.
Green hydrogen and solar corridors
Ports and pipelines as economic multipliers
Visa-free access and diaspora investment
Regulatory sandboxes for energy tech
Currency and payment reforms
Key takeaway for entrepreneurs
Algeria’s energy diplomacy is creating a $5 billion annual market for local SMEs in gas infrastructure, renewables and digital energy services. The 30 % local-content rule in green-hydrogen tenders and the regulatory sandbox for energy tech offer clear entry points for start-ups and diaspora investors. Visa-free travel and faster profit repatriation reduce the friction of doing business from Europe or North America.
💡 Starting a business in Algeria? GlobalStart guides you step by step: procedures, real costs, company forms (SARL, EURL, SPA) and CNRC registration.