Algeria plans to invest $60 billion in its energy sector over the next five years as part of a broader strategy to boost oil, gas, and hydrogen production, Energy and Mines Minister Mohamed Arkab announced at a forum in Algiers. He said about 80 percent of the planned investment will go toward upstream exploration and production, while the remaining funds will be directed to refining and petrochemical development, as reported by Reuters.
The minister emphasized that the initiative aims to strengthen Algeria’s position as a key energy supplier while supporting the global shift toward cleaner fuels. He revealed that renewable energy projects totaling 3,200 megawatts are already underway, and the government has committed to reducing gas flaring to below 1 percent by 2030. The plan also includes an extensive afforestation program covering 520,000 hectares to offset carbon emissions, Reuters reported.
“We are committed to the energy transition without abandoning gas as a natural resource,” Arkab said, noting that Algeria’s strategy seeks to balance sustainability goals with growing domestic energy needs. He added that the investments would enhance energy security and stimulate job creation across the country’s industrial value chain.
Analysts say the move demonstrates Algeria’s intent to diversify revenue sources and modernize its energy infrastructure amid shifting global market dynamics. They caution, however, that the success of the plan will depend on effective financing mechanisms, timely project execution, and stable policy frameworks to attract sustained foreign investment, as highlighted by Bloomberg.
