Natural Gas: A Lasting Global Market Force

Energy expert Sadek Boussena stated Monday in Oran that natural gas will continue to play a pivotal role in the global energy market for decades to come, thanks to its cost advantages.

Speaking at the strategic session (A) of the 8th Algerian Gas Industry Association Conference, Boussena outlined that European gas demand will remain robust despite geopolitical turmoil, emphasising Algeria’s strategic strengths in this environment.

By presenting scenarios for gas market development amid current geopolitical tensions, Boussena argued that gas will retain its central place in global energy markets, explaining that this outlook depends on the stability of the global economy and international equilibrium.

Boussena outlined Algeria’s strengths for bolstering its international market standing: vast reserves, low production costs, advanced transport infrastructure, and deep marketing experience. With the world’s 10th-largest proven reserves, Algeria has less gas than Russia and Qatar but achieves some of the region’s lowest extraction costs, making its exports particularly competitive during price swings. Additionally, Algeria’s infrastructure supports swift, reliable deliveries to key markets, further strengthening its position.

He also noted that Algeria’s proximity to European markets offers a major strategic advantage.

Regarding future growth, Boussena emphasised the potential for coordinated development of natural gas, hydrogen, and renewable energy. He suggested that integrating these sectors could unlock significant opportunities for a sustainable energy industry.

To enable this transition, he called for clear regulatory frameworks to spur investment in hydrogen, public-private partnerships to fast-track the adoption of renewables, and upgrades to existing gas infrastructure to support hydrogen blending and transport. He also recommended targeted R&D to enhance the efficiency and affordability of combined energy systems. These measures, he said, would enhance Algeria’s competitive stance while offering a model for countries pursuing a balanced, low-carbon energy portfolio.

Sadek Boussena, an economist, served as Minister of Energy from 1988 to 1991. He also held top positions in the sector, including head of the Sonatrach Group and president of OPEC. He is recognised for his expertise in energy and his forward-looking analyses.