Why Algeria Matters in Europe's Energy Future
**Algeria is a critical pillar of Europe’s energy security**, primarily due to its vast natural gas reserves (**4.5 trillion cubic meters**) and strategic geographic proximity, which allows for stable pipeline exports that reduce European dependence on Russian hydrocarbons.
* **Current Supply Role**: In **2025**, Algeria supplied the EU with **39–40 billion cubic meters** of gas, accounting for **13–14%** of total imports, with major flows delivered via the **TransMed pipeline to Italy** and the **Medgaz pipeline to Spain**.
* **Geopolitical Stability**: Following disruptions in global supply chains, such as the **2026 closure of the Strait of Hormuz** and strikes on Qatari facilities, Algeria has acted as a vital "safety valve," with pipeline deliveries proving cheaper and less vulnerable to maritime geopolitical risks than LNG.
* **Future Energy Transition**: Algeria is positioning itself as a long-term partner in **green hydrogen** and renewable energy, aiming to meet **10% of Europe’s green hydrogen demand by 2040** through projects like the **SoutH2 Corridor**, while its domestic shift to renewables could free up additional natural gas for export.
* **Economic & Strategic Investment**: The country is launching a **$60 billion investment plan (2025–2029)** to unlock untapped reserves, aiming to increase production capacity to meet rising European demand despite current infrastructure constraints and growing domestic consumption.