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Algeria, Russia to Produce 2Mln Cubic Meters of Gas Daily in 2026

Russian President Vladimir Putin meets Algerian Prime Minister Aymen Benabderrahmane on the sidelines of the Russia-Africa summit in St. Petersburg. (EPA)
Russian President Vladimir Putin meets Algerian Prime Minister Aymen Benabderrahmane on the sidelines of the Russia-Africa summit in St. Petersburg. (EPA)
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Algeria, Russia to Produce 2Mln Cubic Meters of Gas Daily in 2026

Russian President Vladimir Putin meets Algerian Prime Minister Aymen Benabderrahmane on the sidelines of the Russia-Africa summit in St. Petersburg. (EPA)
Russian President Vladimir Putin meets Algerian Prime Minister Aymen Benabderrahmane on the sidelines of the Russia-Africa summit in St. Petersburg. (EPA)

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.” 

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Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
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Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo

The US dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multi-month lows amid the shifting threat of tariffs.

The focus for markets in 2025 has been on US President-elect Donald Trump's agenda as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures, according to Reuters.

CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said Trump was looking at more nuanced tariffs, which he later denied.

Concerns that policies introduced by the Trump administration could reignite inflation has led bond yields higher, with the yield on the benchmark 10-year US Treasury note hitting 4.73% on Wednesday, its highest since April 25. It was at 4.6709% on Thursday.

"Trump's shifting narrative on tariffs has undoubtedly had an effect on USD. It seems this capriciousness is something markets will have to adapt to over the coming four years," said Kieran Williams, head of Asia FX at InTouch Capital Markets.

The bond market selloff has left the dollar standing tall and casting a shadow on the currency market.

Among the most affected was the pound, which was headed for its biggest three-day drop in nearly two years.

Sterling slid to $1.2239 on Thursday, its weakest since November 2023, even as British government bond yields hit multi-year highs.

Ordinarily, higher gilt yields would support the pound, but not in this case.

The sell-off in UK government bond markets resumed on Thursday, with 10-year and 30-year gilt yields jumping again in early trading, as confidence in Britain's fiscal outlook deteriorates.

"Such a simultaneous sell-off in currency and bonds is rather unusual for a G10 country," said Michael Pfister, FX analyst at Commerzbank.

"It seems to be the culmination of a development that began several months ago. The new Labour government's approval ratings are at record lows just a few months after the election, and business and consumer sentiment is severely depressed."

Sterling was last down about 0.69% at $1.2282.

The euro also eased, albeit less than the pound, to $1.0302, lurking close to the two-year low it hit last week as investors remain worried the single currency may fall to the key $1 mark this year due to tariff uncertainties.

The yen hovered near the key 160 per dollar mark that led to Tokyo intervening in the market last July, after it touched a near six-month low of 158.55 on Wednesday.

Though it strengthened a bit on the day and was last at 158.15 per dollar. That all left the dollar index, which measures the US currency against six other units, up 0.15% and at 109.18, just shy of the two-year high it touched last week.

Also in the mix were the Federal Reserve minutes of its December meeting, released on Wednesday, which showed the central bank flagged new inflation concerns and officials saw a rising risk the incoming administration's plans may slow economic growth and raise unemployment.

With US markets closed on Thursday, the spotlight will be on Friday's payrolls report as investors parse through data to gauge when the Fed will next cut rates.