Russian Energy Minister Nikolay Shulginov announced on Thursday a partnership with Algeria to produce two million cubic meters of gas daily.
Meanwhile, Algeria and Japan signed an agreement to establish a committee to develop economic cooperation and trade between their countries.
The developments reflect a new Algerian approach in seeking new partners, away from the traditional partners, especially in Western Europe.
Gazprom plans to start the production of hydrocarbons at the El Assel area in Algeria in 2026, Shulginov said in an interview with TASS on Thursday.
The project is a $1 billion investment between Gazprom and Algerian oil company Sonatrach to develop two newly discovered fields in the El Assel area and Hassi Messaoud (900 km to the south of the capital).
The partnership aims to produce two million cubic meters of natural gas daily, more than 1,000 tons of condensers, and more than 220 tons of liquefied petroleum gas.
"We also discussed Gazprom’s operations in the country. In 2026, the company plans to start the production of hydrocarbons in the El Assel area," Shulginov said.
Overall, Moscow and Algiers agreed to expand the presence of Russian companies in gas production projects in Algeria, the minister added.
The announcements were made in wake of Algerian President Abdelmadjid Tebboune’s visit to Russia in mid-June.
Gazprom and Sonatrach are jointly developing the El Assel area in the country. Gazprom International is the operator of the project at the geological exploration stage. Gazprom’s share in the project totals 49%, while Sonatrach holds 51%.
Shulginov made his remarks ahead of the 2023 Russia–Africa Summit in St. Petersburg on Friday.
Russian gas companies are ready to participate in projects on the supply of LNG and on the construction of gas infrastructure in Africa, he added.
He further revealed Moscow’s plans to expand in Africa.
Meanwhile, Algeria’s Acting Secretary General of the Ministry of Foreign Affairs and National Community Abroad Noureddine Khandoudi and Japan’s Ambassador to Algeria Kono Akira signed an agreement to set up the Algeria-Japan Joint Economic Committee.
The Committee will be co-chaired by high-level government representatives, read the agreement.
Japan’s Ambassador stressed that Japanese businessmen are interested in investing in Algeria.
He hailed the “significant efforts exerted by Algeria in enhancing the business climate, especially with the issuance of the new investment law and other legislations.”
