Algeria, EU Strengthen Energy Ties at 6th High-Level Dialogue
Image: Algerie Eco
Takeaway
For investors, the reaffirmed strategic energy partnership between Algeria and the EU signals continued opportunities in Algeria's hydrocarbons sector, particularly in natural gas exploration and production. Companies involved in renewable energy technologies and infrastructure development, especially electricity interconnections and hydrogen transport, should also explore potential ventures in Algeria, supported by EU and German funding through programs like TaqatHy+.
The 6th High-Level Political Dialogue on Energy between Algeria and the European Union convened in Algiers on February 12, 2026, reaffirming their strategic energy partnership. The meeting was co-chaired by Mohamed Arkab, Algeria's Minister of State and Minister of Hydrocarbons and Mines, Mourad Adjal, Minister of Energy and Renewable Energies, and Dan Jørgensen, European Commissioner for Energy and Housing. Discussions centered on fortifying cooperation in natural gas, renewable energy, and green hydrogen, amidst global energy market volatility and the ongoing energy transition.
The dialogue builds upon the Memorandum of Understanding signed in 2013, aimed at bolstering energy relations while maintaining balanced interests. Algeria's role as a reliable gas supplier to Europe was emphasized, particularly given current geopolitical tensions. Both parties expressed interest in increasing European investment in Algeria's hydrocarbons sector, especially natural gas development. The EU aims to eliminate Russian energy imports by the end of 2027 and views Algeria as a key partner in this effort. In 2023, Algeria supplied 19% of the natural gas exported by pipeline to the EU.
Discussions also covered methane emission reduction, with Algeria committed to aligning with EU regulations to ensure the competitiveness and sustainability of its gas exports. The EU welcomed Algeria's commitment to methane mitigation, highlighting its importance for the long-term viability of gas exports. The SoutH2 Corridor project, designed to establish a hydrogen transport link between Algeria and Europe, was also a key topic. The EU and Germany are co-financing the TaqatHy+ program with €15 million and €13 million respectively, to support renewable energy deployment, grid integration, hydrogen economy development, and methane emission reduction. Algeria has launched a program to generate approximately 4,000 megawatts of electricity from renewable sources, currently under implementation as part of a broader 15,000-megawatt plan by 2035.
European investment in Algeria's upstream gas sector is encouraged to sustain production and ensure stable supply. Enhanced cooperation on regulatory frameworks and investment facilitation will advance cross-border electricity links. The EU exempted Algerian LNG from a newly introduced enhanced origin-declaration mechanism applied to other suppliers, reaffirming Algiers' status as a priority partner. In 2025, Turkey imported 3.14 million tonnes of Algerian LNG, followed by France (2.31 million tonnes), Italy (1.62 million), Spain (1.44 million) and the United Kingdom (0.64 million).
Looking ahead, both sides will continue collaboration through sectoral working groups and expert groups on natural gas, electricity, renewable energy, hydrogen, and energy efficiency. These groups will focus on aligning regulatory approaches, infrastructure planning, and investment strategies. The 7th GECF Summit, bringing together the world's main gas exporting countries, will be held in Algeria from February 29 to March 2.