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2. Southwest Gas Fields Development - National oil company Sonatrach, in collaboration with L&T Hydrocarbon Engineering, is developing new gas processing infrastructure in Adrar. The project enhances capacity to 14 million m³/day with state-of-the-art separation, compression, and mercury removal systems. 3. Northern Rail Network Expansion - A 185-kilometre corridor linking Tissemsilt, Tiaret, and Relizane will improve logistics and regional transport. This is part of broader efforts to modernise Algeria’s national rail network. 4. Bled El-Hadba Phosphate Project - Backed by $7-Billion, this mining venture taps into 22 billion tonnes of reserves and is expected to generate over 12 000 jobs during construction. It underlines Algeria’s strategy to expand beyond oil and gas. 5. Enhanced Desalination Programme (2025–2030) - To combat water scarcity, Algeria is rolling out seven new desalination plants. This will increase the percentage of desalinated water in national drinking supplies, from 18% to 42%, with all engineering led by Algerian firms. 6. SoutH2 Corridor – Green Hydrogen Pipeline to Europe - Algeria is positioning itself as a key hydrogen supplier to Europe. The planned 3,300 km SoutH2 pipeline—linking North Africa with Italy, Germany, and Austria—will have the capacity to export 4 million tonnes annually. Feasibility studies are underway in partnership with EU stakeholders. Conclusion Morocco and Algeria are recalibrating their industrial and infrastructure trajectories. While Morocco is leveraging its renewable energy momentum and strategic location to attract global investment, Algeria is taking concrete steps to reduce dependency on hydrocarbons and embrace economic diversification. Both countries present a growing pipeline of opportunities across energy, infrastructure, and logistics, making them increasingly relevant to global supply chains and strategic investors.
ALGERIA:
An Energy Giant with Eyes on Diversification Algeria, Africa’s largest country by landmass, holds immense strategic and economic weight in the Maghreb region. With a population of 47.8- million, its economy is centred around hydrocarbons. The official languages are Arabic and Tamazight, though French remains prevalent in business and education. With a nominal GDP of approximately $268.9 billion, Algeria’s economic landscape is shaped by: • Hydrocarbons: Oil and gas account for over 90% of export earnings. • Mining: Rich reserves of phosphates, iron ore and zinc. • Agriculture: Staple crops include wheat, dates, and olives. • Manufacturing: Cement, steel, and food processing industries show steady growth. Key challenges include overdependence on hydrocarbons, high youth unemployment, and the urgency to diversify revenue streams. Major Projects Driving Algerian Infrastructure 1. Tafouk 1 Mega Solar Project - This $3.6 billion renewable energy initiative aims to deliver 4 GW across five phases by 2025, up from 500 MW in 2020. It forms the cornerstone of Algeria’s clean energy transition and emissions reduction strategy.
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Issue 3 – 2025
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