Summary:

On 6 October 2026, Saudi energy group Midad Energy announced that it plans to invest $3 billion in the first phase of its $5.4 billion gas development project in Algeria’s Illizi province, with production targeted for late 2028, subject to approval of the development plan by the National Agency for the Valorization of Hydrocarbon Resources (ALNAFT). 

The project, operated under a production-sharing contract with Sonatrach, is expected to begin at 8 million cubic meters of gas per day before rising to 11.3 million, with a second phase targeting eventual capacity of 20 million cubic meters per day. 

Development plans include exploration, seismic surveys, drilling and the installation of gas processing and compression facilities. Midad also indicated that the project could serve as a starting point for expanding its upstream operations in Algeria and the wider region. 

Outlook: 

The Midad investment marks a new opportunity for Algeria to capitalize on shifting global energy dynamics as disruptions in the Strait of Hormuz heighten concerns over supply security and reinforce demand for alternative gas suppliers. 

As European buyers seek to diversify their energy sources, the project could strengthen Algeria’s longer-term export capacity while attracting further foreign investment into its upstream sector.

However, with production not expected before late 2028, the immediate opportunity lies in leveraging existing gas supplies and infrastructure, while the Midad project offers scope to expand Algeria’s position in international energy markets over time. 

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