Lamentations in Paris over Losing Gas Production Positions in Algeria

As the global energy crisis intensified due to the closure of the Strait of Hormuz and the resulting supply shortage from the Gulf region, French lamentations and regrets surfaced over ill-conceived moves in the Algerian gas sector.

The withdrawal of the company Engie from the Touat gas field, described as a “very bad” time, was viewed as an indication of the ongoing decline of France’s presence and influence in Algeria.

This sense of regret in France was reflected in a lengthy article in the newspaper “La Tribune,” titled “The Global Gas Crisis Strikes as Engie is Abandoning its Positions in Algeria.” The article explains that the decision, made before the outbreak of war in the Middle East, under what were described as normal circumstances, has now become a costly strategic mistake.

The article, published on March 27, indicated that the formalisation of the French group’s withdrawal from the Touat gas field in Adrar (southern Algeria), by presidential decree signed by President Abdelmadjid Tebboune in February 2026, was not merely an adjustment to the investment portfolio, it is part of a deeper realignment of the energy balance and relations between Algeria and Europe and its historical partners, taking on an unexpected resonance at a time when global gas markets are in turmoil.

The source noted that this decision initially went largely unnoticed by the general public, despite effectively ending the presence of one of the most prominent French players in the Algerian gas sector. However, its repercussions only became apparent weeks later, as global markets entered a period of severe turmoil due to tensions in the Middle East.

The analysis presented by La Tribune emphasised that Engie’s exit redistributed shares within the Touat project. Italy’s Eni strengthened its position, increasing its stake to 42.9%, while Thailand’s PTTEP acquired 22.1%. Sonatrach retained its 35% share and exclusive control over the marketing of all the gas production in the field.

The article stated that this seemingly technical shift acquired a strategic dimension with the outbreak of the global gas crisis, making it appear as though France had abandoned a crucial position at a time when it should have been strengthening its presence. It noted that the French company justified its withdrawal as a strategic refocus on its climate commitments in Europe, but this explanation did not hold up against a broader reading of the political and economic context.

La Tribune noted that Algerian-French relations have been strained since 2024, particularly after France supported Moroccan sovereignty over Western Sahara. This has directly impacted the business climate and weakened the presence of French companies in the hydrocarbons sector. Data confirms a significant decline in trade between the two countries, falling from €11.8 billion in 2023 to €5.4 billion in 2024, a clear indication of Paris’s gradual loss of its economic foothold in Algeria.

The newspaper emphasised that what happened cannot be interpreted as isolated technical decisions, but rather as a reflection of a profound political decline that directly impacted the positioning of French companies, while other partners, more aligned with the new Algerian vision, rose to prominence.

The same analysis pointed out the irony that Engie’s withdrawal was not inevitable, as evidenced by the fact that other companies, such as Total Energy, managed to retain their assets thanks to long-term contracts. This raises serious questions about a French miscalculation of the situation. The analysis highlighted that Algeria, on the other hand, moved quickly to reshape its energy partnerships, strengthening Eni’s role as a key partner in the European market. This was facilitated by strong ties with Italy, at a time when Rome was seeking alternative supplies. Furthermore, Eni consolidated its position in the Touat gas field by increasing its stake, capitalising on accumulated trust. In 2024, Eni paid over $1.2 billion in taxes and royalties to Algeria, making it the second-largest foreign company in terms of revenue to the country.

The article in La Tribune noted that this global energy shock has brought Algeria back into the spotlight as one of the few suppliers capable of providing relative stability to European markets, thanks to its geographical location and readily available infrastructure. It highlighted that Algeria possesses a significant advantage in the form of two pipelines to Europe, making it less vulnerable to disruptions compared to other suppliers, which has increased its importance to European countries seeking urgent alternatives.

It explained that negotiations are underway with Rome and Madrid to increase deliveries, with prices to be revised by 15 to 20% for the additional volumes, reflecting the strength of Algeria’s negotiating position in the current circumstances.

The report emphasised that while Algeria cannot fully replace Qatar in the liquefied natural gas (LNG) market, it has become a pivotal player in securing a significant part of Europe’s needs, particularly in light of recurring crises.

The analysis concluded that what happened in the “Touat Gas” field goes beyond the mere withdrawal of a company, revealing a profound shift in the energy balance, where Algeria imposes its conditions and redraws the map of its partners, while France finds itself out of the game, watching from afar the loss of positions that were until recently pillars of its influence.