Engie Exits Touat Gas Project as ENI and PTTEP Increase Stakes
Image: Algerie Eco
Takeaway
Engie's exit from the Touat gas project and the increased stakes for ENI and PTTEP signal a strategic realignment in Algeria's energy sector. Investors should monitor ENI and PTTEP's operational performance at Touat, as their success could pave the way for further acquisitions in Algeria's gas fields. The shift in ownership could impact the competitive landscape for LNG supply in the Mediterranean, particularly affecting companies like Medlink and those involved in the Southern Hydrogen Corridor.
French energy company Engie has officially withdrawn from the Touat gas project located in the Adrar province of southwestern Algeria. The company's shares in the project have been acquired by Italian firm ENI and Thailand's PTTEP. A presidential decree dated February 17, 2026, published in the Official Gazette, formalized Addendum No. 5 to the contract dated July 10, 2002, for hydrocarbon exploration, appraisal, and exploitation in the Touat area (Blocks 352A and 353). The agreement between Sonatrach and “E&E Algeria Touat B.V.” was signed in Algiers on November 10, 2025.
Prior to Engie's exit, the Touat gas field was operated by Sonatrach in partnership with Neptune Energy and Engie. In 2024, ENI acquired Neptune Energy's stake, increasing its share in the field to 35%, while Sonatrach held approximately 35% and Engie held 30%. Under the new agreement, PTTEP acquired 22% of the shares previously held by Engie, and ENI increased its stake by 8%, bringing its total share to 43%. Sonatrach's direct share remains at 35%. All gas produced by the Touat field is now sold to Sonatrach.
The Touat gas project, situated 1,500 km southwest of Algiers, encompasses ten gas fields with proven and probable reserves of 68.5 billion cubic meters of natural gas and 8.5 million barrels of condensates. The project covers an area of 500 square kilometers and lies 700 km from the Hassi R'Mel field, a key supplier for the Algerian gas system. The project's development plan was submitted in June 2009, and the first phase was sanctioned that year. The project will have an annual production capacity of 4.5 billion standard cubic meters of gas and 630,000 barrels of condensate.
The Touat gas field experienced a production halt in the fall of 2021 due to mercury contamination at the gas processing facility. Following ENI's acquisition of Neptune Energy's British assets, investments were made to restart production. Production at the Touat gas field is currently stable, with an estimated daily output of approximately 13 million cubic meters and an annual production of 4.5 billion cubic meters. Técnicas Reunidas won a $1 billion contract in August 2013 for engineering, procurement, construction, and commissioning of the gas processing facilities.
Analysts will be watching Sonatrach's next moves to see if they can reach their goal to increase the country's gas production to 200 billion cubic meters over the next 5 years, with approximately 100 billion cubic meters allocated for export. Algeria's crude oil production is expected to stabilize at one million barrels per day in 2026, and gas production is projected to reach 103.39 billion cubic meters annually. The Touat Phase 2 expansion project is currently in the feasibility stage and is expected to start in 2026.