Daewoo Engineering & Construction (Daewoo E&C) has been named the preferred bidder for TotalEnergies’ 6 million-ton liquefied natural gas (LNG) project in Algeria, according to finance.biggo.com. The announcement, made on 12 August 2026, marks a significant step forward in Algeria’s efforts to expand its LNG export capacity and strengthen partnerships with international energy firms.
The project, valued at an estimated $3.5 billion, will be developed in partnership with Algeria’s state-owned energy company Sonatrach. While the exact location has not been disclosed, industry analysts suggest it will likely be tied to existing gas infrastructure in the country’s southern regions, where major gas fields such as Hassi R’Mel and Ahnet are located. TotalEnergies, a long-standing player in Algeria’s energy sector, will serve as the operating partner, bringing technical expertise and global market access to the venture.
For Algerian entrepreneurs and local businesses, the selection of Daewoo E&C as the preferred bidder presents opportunities for subcontracting, supply chain integration, and skill development. As a Korean engineering firm with a strong track record in large-scale energy projects, Daewoo E&C is expected to bring modern construction methods and efficient project management to the execution phase. This could open doors for Algerian firms specializing in civil works, logistics, and equipment supply to participate in tenders or joint ventures during construction.
Sonatrach’s role in the project underscores the state’s commitment to maintaining and growing Algeria’s LNG export portfolio amid fluctuating global energy prices. Since 2020, Algeria has ranked among the top 10 global LNG exporters, though output has been constrained by aging infrastructure and limited new investment. The TotalEnergies project aims to add 6 million tons per year to Algeria’s export capacity, potentially boosting annual revenues by over $2 billion at current market prices.
This deal also reflects a broader trend of international energy companies seeking to deepen ties with Sonatrach as Europe seeks to diversify its gas supply away from Russian sources. Algeria’s proximity to European markets and its existing pipeline connections—such as the Medgaz and Galsi pipelines—make it a strategic partner for energy security. TotalEnergies’ involvement signals confidence in Algeria’s regulatory environment and long-term role in global energy markets.
For Algerian entrepreneurs in the diaspora, the project offers channels to reconnect with local opportunities through partnerships or advisory roles. Diaspora professionals with expertise in engineering, project finance, or international procurement can position themselves as intermediaries between Daewoo E&C, Sonatrach, and local contractors. Additionally, the project may catalyze the creation of new service companies focused on LNG-related logistics, maintenance, and training—sectors where foreign expertise can be paired with local talent.
The announcement comes as Algeria is also advancing renewable energy initiatives, including solar power projects, to reduce domestic gas consumption and free up more LNG for export. The convergence of hydrocarbon expansion and renewable development could create a more balanced energy economy, offering entrepreneurs opportunities to diversify into emerging sectors.
Key takeaway for entrepreneurs: The Daewoo E&C and TotalEnergies LNG project in Algeria unlocks subcontracting and partnership opportunities for local and diaspora-linked firms. With 6 million tons of new export capacity on the horizon, Algerian businesses in engineering, logistics, and energy services can prepare to respond to upcoming tenders. The project also highlights Algeria’s strategic position in Europe’s energy transition.
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