Algeria has unveiled a new gas complex in Illizi, located in the southeast of the country, with a production capacity of 12 million cubic metres per day.
The facility, inaugurated on Wednesday, August 20, is being hailed as a symbol of the nation’s energy strength, yet it also raises questions over the country’s long-term economic and energy strategy.
At the ceremony, Energy Minister Mohamed Arkab and Sonatrach CEO Rachid Hachichi underscored the strategic importance of the Ain Tsila field and its associated infrastructure. The site includes two gas processing units, a 125-megawatt power plant, and 355 kilometres of pipelines.
Officials presented the project as evidence of growing industrial capability.
However, analysts caution that this development highlights structural challenges facing Algeria’s energy sector.
The country remains heavily reliant on hydrocarbons, which account for over 95% of its export earnings. While around 2.4 million cubic metres per day from the nearby Tin Fouyé Tabankort field is allocated for export, rising domestic demand continues to consume a significant portion of production, reducing the volume available for international markets.
Critics argue that Algeria lacks a robust strategy for energy transition, despite possessing some of the highest solar potential in the world. Investment remains concentrated in hydrocarbons, leaving the country exposed to global price volatility and placing mounting pressure on gas supplies needed both for domestic electricity generation and exports.
The inauguration also included a new local airport and a residential camp for 220 workers, which authorities say will promote integrated regional development. Yet many experts believe such infrastructure projects cannot conceal a deeper issue — a chronic dependence on energy revenues that delays economic diversification and slows action on pressing climate and social challenges.
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