Algeria's Sonatrach and Sonelgaz Expand Operations in Africa, Globally
Image: Algerie Eco
Takeaway
The expansion of Sonatrach and Sonelgaz into international markets signals a strategic shift towards diversifying revenue streams and securing long-term growth. International investors should closely monitor the development of Sonelgaz International's partnerships and Sonatrach's drilling operations in Niger, as these ventures could unlock new opportunities in the African energy sector.
Algeria is expanding its energy footprint across Africa and into global markets, with Sonatrach launching drilling in Niger and Sonelgaz creating a new international subsidiary. The Ministry of Energy and Renewable Energies announced the creation of \"Sonelgaz International\" on Tuesday, March 24, as part of President Abdelmadjid Tebboune's directives to diversify the national economy. Hakim Zebiri, Director of International Cooperation at the Ministry of Hydrocarbons and Mines, announced in Niamey on Tuesday that Sonatrach plans to begin well-drilling operations at the Kafra field in Niger in early April.
Sonelgaz International is designed to strengthen the international activity of the Algerian electricity and gas operator, Sonelgaz. The creation of Sonelgaz International aligns with the Ministry's vision to strengthen Algeria's presence on the international stage. In October 2025, Sonatrach CEO Rachid Hachichi emphasized the group's readiness for international market expansion to boost competitiveness and drive long-term growth. Sonatrach also signed an agreement with Czech company ČEZ in October 2025, extending a natural gas supply contract for another year via the Algeria-Italy pipeline.
Sonatrach's drilling at the Kafra field in Niger follows the completion of several studies. Sonelgaz International will focus on markets in Africa and the Mediterranean. The new company will explore investment and cooperation opportunities, develop strategic partnerships, and provide services including technical studies, project execution, operation, maintenance, training, and skills transfer. Sonatrach produces approximately 130 billion cubic meters of natural gas per year, along with 8 million tons of condensate and 9 million tons of LPG.
These moves benefit Algeria by expanding its energy influence and revenue streams. Niger will benefit from the development of its energy resources and strengthened technical capabilities through training programs and a specialized oil sample analysis laboratory. European markets, particularly in central Europe, will gain access to more natural gas through Sonatrach's agreements. Companies in the plastics processing sector may also benefit from Sonatrach's ongoing projects to increase domestic petrochemical production.
Looking ahead, the arrival of necessary equipment and supplies will signal the start of drilling operations at the Kafra field in Niger in early April. Investors should monitor Sonelgaz International's progress in securing partnerships and projects in African and Mediterranean markets. The MTBE project in Arzew, which began in 2022, is 86% complete as of February 2026, with production and commissioning projected for June 2026.