meed-logo

line1 line2 line3
SIGN IN / REGISTER

Ukraine war sparks $13bn Algeria projects boom

22 February 2023

 

The value of active oil, gas and chemical projects in Algeria has surged by $12.7bn over the past 12 months as the North African country has looked to expand capacity to meet demand from European nations seeking alternatives to Russian energy imports.

Since the war in Ukraine started on 24 February last year, the total value of oil, gas and chemical projects in Algeria, including both planned projects and those under execution, has increased by 35 per cent, rising from $45.1bn to $57.4bn.

The multibillion-dollar boom in projects has been mainly driven by gas projects and chemical projects, according to data compiled by the regional project-tracking service MEED Projects.

In the wake of the war, the total value of active gas projects in Algeria has increased by 38 per cent, rising from $15.4bn to $21.2bn.

Over the same period, the value of chemical projects has increased by 75 per cent, rising from $9.3bn to $16.3bn.

The value of active oil projects has remained virtually the same, declining slightly from $11bn to $10.8bn.

Since the beginning of the war in Ukraine, European leaders looking to secure gas to replace Russian imports have visited the North African country.

As well as having significant natural gas reserves, Algeria benefits from existing gas pipeline links to Europe to facilitate exports.

In August, French President Emmanuel Macron travelled to Algeria as French imports of Algerian gas surged by 168 per cent.

In September, European Council president Charles Michel visited Algeria and described it as a “reliable” partner in energy cooperation.

During a trip to Algiers by Italian Prime Minister Giorgia Meloni, it was announced on 23 January that the Italian oil and gas firm Eni and Algeria’s national oil company Sonatrach had signed new agreements designed to boost the North African company’s gas export capacity.

It seems highly likely that the growth in the value of Algeria’s active gas projects over the past 12 months is just the start and that more projects will be announced as the country continues to try to capitalise on European demand for gas.

In January, Sonatrach announced plans to invest more than $30bn in exploration and production to boost the country’s natural gas output.

The funds will also be spent on upgrading infrastructure to export gas from liquefied natural gas (LNG) terminals and by pipelines to Europe, according to the company’s chief executive Toufik Hakkar.

Hakkar said that Algeria wanted to become one of the world’s most important sources of natural gas through Sonatrach and its planned investments.

Gas projects

In the wake of the war in Ukraine, Algeria has revived phase two of the Touat natural gas field development project.

The project is estimated to be worth $1bn and is being developed by Groupement TouatGaz, a partnership between Sonatrach and London-based Neptune Energy.

The project scope includes the development of 19 wells, the construction of a gas treatment plant, and the installation of pipelines.

In November last year, Sonatrach signed a series of contracts with the Italian contractors Tecnimont and Arkad, as well as local contractors, in a push to develop its hydrocarbons sector.

Together, the contracts, which were all signed at a single ceremony, were worth more than $660m.

The contracts included one worth AD56bn ($400m) with Tecnimont for a liquefied petroleum gas (LPG) facility at its Rhourde el-Baguel oil field.

The plant is expected to process 10 million cubic metres a day of associated gas, allowing the production of 1,000 tonnes a day (t/d) of LPG, 300 t/d of condensate and 8.7 million cubic metres a day of gas.

Chemical projects

The dramatic expansion in the total value of chemical projects in Algeria is also related to global macroeconomic conditions.

One of the largest chemical projects to be announced in Algeria since the start of the war in Ukraine is an integrated fertiliser complex.

As much of the world’s fertilisers are produced from hydrocarbons, such as natural gas and coal, the prices of fertilisers are closely linked to energy markets and have soared in value over recent years.

In March last year, a partnership between Asmidal, a subsidiary of Sonatrach, and the Chinese firms Wuhuan Engineering and Tianan Chemical announced plans to develop an integrated phosphates project in Algeria’s Tebessa Province.

The client on the project will be an Algerian-Chinese joint venture created by the companies, which is named Algerian Chinese Fertilisers Company (ACFC). The project is estimated to have a value of around $7bn.

Opportunities

The rapid growth in the value of active gas and chemical projects in Algeria has meant that many contractors have started to look at the Algerian market for opportunities. Paying attention to the North African country could likely lead to significant contract wins for some.

Since the war in Ukraine started, the total value of oil, gas and chemical projects in the study phase has nearly doubled, rising by 93 per cent from $16.6bn to $32.0bn.

This surge in project announcements in the country makes it likely that Algeria will see a large volume of gas and chemical project contract awards over the coming years, even if some projects are cancelled or delayed.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10616495/main4934.jpg
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Bidders get more time for Jebel Ali sewage EPC contract

    29 April 2026

     

    Dubai Municipality has extended the deadline for contractors to submit bids for a contract covering the expansion of the Jebel Ali sewage treatment plant (STP) phases one and two.

    Contractors now have until June to submit offers, a source told MEED. Bidding had been expected to close on 30 April.

    The upgraded facility will be capable of treating an additional sewage flow of 100,000 cubic metres a day (cm/d), with the expansion estimated to cost $300m.

    The scope includes the design, construction and commissioning of infrastructure and systems required to support the increased capacity.

    Located on a 670-hectare site in Jebel Ali, the original wastewater facility has a treatment capacity of about 675,000 cm/d following the completion of phase two in 2019, combining approximately 300,000 cm/d from phase one and 375,000 cm/d from phase two.

    The main element of the expansion involves modifications to the secondary treatment process at Jebel Ali STP phase two.

    UK-headquartered KPMG and UAE-based Tribe Infrastructure are serving as financial advisers on the project.

    Future expansion

    It is understood that the project is part of long-term plans to treat about 1.05 million cm/d once all future phases are completed.

    According to sources, this includes a Jebel Ali-based build-operate-transfer (BOT) project to be developed under a public-private partnership (PPP) model.

    It is understood that the prequalification process for this will begin in the coming months.

    In February, MEED exclusively revealed that the municipality is preparing to tender the main construction package for the Warsan STP by the end of the year.

    As MEED understands, the Warsan STP had previously been planned as a PPP project.

    The main package will now be procured as an engineering, procurement and construction contract, a source said.

    The project involves the construction of a sewage treatment plant with a capacity of about 175,000 cm/d, including treatment units, sludge handling systems and associated infrastructure.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16608027/main.jpg
    Mark Dowdall
  • UAE’s departure from Opec marks a tectonic shift

    29 April 2026

    Commentary
    Indrajit Sen
    Oil & gas editor

    Register for MEED’s 14-day trial access 

    The UAE’s decision to leave Opec and the Opec+ grouping marks a significant turning point in global oil markets and highlights shifting geopolitical dynamics and evolving supply expectations.

    The UAE announced it will leave the producer alliance effective 1 May, ending nearly six decades of membership. The move reflects a broader strategic shift, as the country seeks greater flexibility over its production policy amid rising capacity and changing market conditions.

    For oil markets, this is about more than one country wanting to pump more oil. Abu Dhabi National Oil Company (Adnoc) has spent billions of dollars over the years to raise crude production capacity to 5 million barrels a day.

    Opec+ quotas had increasingly looked as though they were stifling Abu Dhabi’s growing desire to maximise revenues by tapping into its expanded spare capacity. Leaving the Opec+ coalition gives Abu Dhabi more room to monetise those investments.

    The timing also matters. It comes against a backdrop of regional security concerns, tensions around Iran and the Strait of Hormuz, and a sense that consumers are once again being squeezed by high energy costs and depleted strategic reserves. 

    The immediate dip in the price of global benchmark Brent crude following the announcement of the UAE’s decision on 28 April showed the market’s first instinct: more UAE barrels could mean more supply and lower prices. However, the price rebound on 29 April, with Brent trading around $111 a barrel, also tells the other half of the story: extra capacity does not instantly become risk-free supply when regional bottlenecks and security threats remain front and centre.

    For Opec+, this is a blow to unity and to Saudi Arabia’s ability to marshal producer discipline. It does not mean that a price war will start tomorrow, but it raises the risk of other member states choosing to abandon the alliance’s cooperation mechanism and pursue a higher market share. In trading terms, this adds a new volatility premium: more potential supply, less cartel discipline and a Gulf energy landscape that looks significantly less predictable.

    The announcement comes at a time of heightened uncertainty in global energy markets, with geopolitical tensions, supply chain constraints and demand recovery trends all contributing to price volatility. The UAE’s exit is expected to reshape market expectations around supply flexibility and producer coordination.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16608006/main.gif
    Indrajit Sen
  • Kuwait Oil Company prepares to sign flowline contract

    29 April 2026

     

    State-owned upstream operator Kuwait Oil Company (KOC) is preparing to sign a contract worth KD174.2m ($565m) with Kuwait-based Heavy Engineering Industries & Shipbuilding Company (Heisco), according to industry sources.

    The contract is focused on developing flowlines and associated works in North Kuwait.

    One source said: “The contract is expected to be signed soon and everything associated with the contract award process is moving very smoothly.”

    Heisco announced in a stock exchange statement earlier this month that it had received a formal contract award letter for the project.

    While progress on the project is moving smoothly for now, the project may be impacted by fallout from the US and Israel’s war with Iran in the future.

    The project requires a large volume of pipelines to be transported into Kuwait, which would normally be shipped through the Strait of Hormuz.

    Heisco was the fourth-lowest bidder for the contract.

    Also this month, Heisco submitted the lowest bid for a project to upgrade part of the Mina Abdullah refinery’s export infrastructure.

    It submitted a bid of KD11,919,652 ($38.6m) for the project to implement renovation works on the artificial island that forms part of the port at the refinery.

    The only other bidder was Kuwait’s International Marine Construction Company (IMCC), which submitted a bid of KD12,480,113 ($40.4m).

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16599814/main.png
    Wil Crisp
  • Algerian-Indian team makes oil and gas discovery in Libya

    29 April 2026

    A consortium of state-owned companies from India and Algeria has made an oil and gas discovery in Libya’s Ghadames basin.

    The consortium comprises Algeria’s Sonatrach International Petroleum Exploration & Production (Sipex), Oil India and Indian Oil Corporation.

    The discovery was made in the Area 95/96 block, which is located near Libya’s border with Algeria.

    In a statement, India’s Ministry of Petroleum & Natural Gas said that the well was completed to a final depth of 8,440 feet and achieved production of 13 million cubic feet of gas a day and 327 barrels of condensate a day during testing.

    The hydrocarbons were extracted from the Awynat Wanin and Awyn Kaza formations.

    The ministry added: “The discovery reflects the growing global footprints of Indian energy companies, importance of strategic international alliances, and our commitment to strengthening national energy security through overseas assets acquisition by national oil companies.”

    The consortium won the exploration and production rights for the block, which covers an area of nearly 7,000 square kilometres, during Libya’s fourth oil and gas licensing round in December 2007.

    Stakeholders are expecting a surge in oil and gas project activity in Libya after the country’s rival legislative bodies recently approved a unified state budget for the first time in more than 13 years.

    The Central Bank of Libya confirmed on 11 April that both chambers had endorsed the budget, saying that it was a key step towards restoring financial stability after prolonged division.

    The budget is valued at LD190bn ($29.95bn), and LD12bn ($1.9bn) has been allocated to the NOC.

    An additional LD40bn ($6.3bn) has been allocated for “development projects”.

    Libya has stated that a joint committee has been formed to help prioritise development projects, and the projects have been listed in the budget.

    The development comes at a time when Libya’s oil and gas sector could be positioned to make windfall revenues as oil and gas prices remain high due to fallout from the US and Israel’s war with Iran.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16599813/main.png
    Wil Crisp
  • UAE and Saudi firms plan data centre projects in Saudi Arabia

    29 April 2026

    Register for MEED’s 14-day trial access 

    UAE-based firm Taranis Capital has signed a memorandum of understanding agreement with Saudi Arabia’s Emaar Executive Company to build several data centre facilities in the kingdom.

    According to a statement, the firms plan to develop, construct and operate a portfolio of data centre facilities, each with a capacity of 40-50MW.

    Emaar Executive Company will provide engineering, procurement and construction (EPC) capabilities, alongside its design and operations expertise.

    Saudi Arabia and the UAE are leading the market expansion of data centres through hyperscale campuses, sovereign cloud initiatives and edge data centre deployments.

    Data centres have become foundational infrastructure across the region, underpinning national digital economies and enabling cloud computing, artificial intelligence (AI) workloads, smart cities, e-government platforms, fintech and cybersecurity resilience.

    Governments and enterprises are accelerating investment as data localisation requirements and power-intensive AI applications drive sustained demand for capacity.

    Data centre development is closely aligned with national strategies such as Saudi Arabia’s Vision 2030, the UAE’s digital economy and AI roadmaps, and wider smart city programmes across the GCC.

    These agendas are translating into long-term demand for high-capacity, energy-efficient and resilient data centre infrastructure. 

    Priorities include hyperscale and colocation facilities to support cloud service providers; edge data centres to reduce latency and enable 5G and IoT use cases; energy-efficient designs using advanced cooling, modular construction and renewables; and strategic partnerships between global hyperscalers, local developers and utilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16595179/main.jpg
    Yasir Iqbal