Algeria's natural gas production increased by 4% to 62.621 billion cubic meters during the first seven months of 2026, up from 60.184 billion cubic meters in the same period of 2025. This rise occurred as the country's total gas consumption also grew significantly. Domestic gas consumption in Algeria increased by approximately 7% in the first seven months of 2026, reaching 33.149 billion cubic meters. This compares to 30.942 billion cubic meters consumed during the corresponding period in the previous year. The overall increase in production for the first seven months of 2026 notes a notable expansion in Algeria's capacity to extract natural gas. This sustained growth in production is key for meeting both domestic energy needs and export commitments.
Monthly Production and Consumption
Algerian gas production increased by 3% year-on-year in July 2026, reaching 8.612 billion cubic meters. This figure compares to 8.377 billion cubic meters produced in July 2025. This monthly increase contributed to the overall positive trend observed across the first seven months of the year. Concurrently, gas consumption in Algeria saw a significant rise of 12.6% in July 2026, totaling 4.657 billion cubic meters for the month. This substantial increase in demand shows the growing energy requirements within the country. The electricity generation sector was the primary consumer, utilizing 3.208 billion cubic meters of gas. This amount accounted for 69% of the total gas consumption in July 2026, demonstrating its critical reliance on natural gas. In July 2025, the electricity generation sector consumed 1.606 billion cubic meters of gas, indicating a substantial jump in gas use for power generation within a year.
Drivers of Consumption Growth
Electricity demand in Algeria neared record levels, approaching 21.4 thousand megawatts on July 13, 2026. This demand further exceeded 21.828 thousand megawatts on August 19, 2026. The soaring electricity demand directly correlates with the increased gas consumption by the power sector, as natural gas is a key fuel for electricity generation in Algeria. This surge in demand during the summer months often puts pressure on the country's energy infrastructure. Algerian gas production reached its highest monthly level in January 2026 at 10.437 billion cubic meters, according to data. Subsequent monthly production figures show 8.946 billion cubic meters in February 2026 and 9.669 billion cubic meters in March 2026. Production then registered 8.447 billion cubic meters in April 2026, followed by 8.342 billion cubic meters in May 2026. Production continued with 8.168 billion cubic meters in June 2026. These monthly figures illustrate the fluctuating but generally strong production levels throughout the first half of the year, supporting the overall increase in total production.
Export Trends and Future Deals
Algerian gas exports, encompassing both pipeline and liquefied natural gas (LNG), experienced a decline of more than 5% in July 2026. Total gas exports for July 2026 reached 3.764 billion cubic meters, a decrease from the 3.971 billion cubic meters recorded in July 2025. This reduction in overall exports in July occurred despite the increase in total production over the seven-month period, suggesting a prioritization of domestic consumption. Despite the overall reduction, pipeline gas exports saw an increase, totaling 3.184 billion cubic meters in July 2026 compared to 2.938 billion cubic meters in July 2025. This indicates a shift in the composition of Algeria's gas exports. Conversely, liquefied natural gas exports decreased significantly to 0.580 billion cubic meters in July 2026, down from 1.032 billion cubic meters in July 2025. The substantial drop in LNG exports contributed significantly to the overall decline in total gas exports for the month. In terms of future agreements, Bangladesh is currently seeking to import 10 annual LNG shipments from Algeria through a short-term contract, potentially diversifying Algeria's export destinations and providing future revenue streams, particularly for its LNG sector.