Algeria will struggle to halt gas production slide

Significance

This drag on the economy stems mainly from the poor performance of the natural gas sector, as investment in new projects has been inadequate to compensate for the decline in output from mature fields.

Impacts

• Natural gas might be a driver of growth, despite limited scope to increase oil production due to depleted reserves.
• Development of Algeria’s abundant reserves of shale gas may face strong local opposition.
• Increased gas production could facilitate progress on long-stalled plans to expand fertiliser and petrochemical industries.