Algeria has risen to become the world’s second-largest exporter of seaborne LPG, ranking behind only the United States, according to the latest figures published by the Energy Research Unit (ERU). The milestone comes as global energy markets continue to navigate disruptions linked to geopolitical tensions in the Middle East.
Despite market uncertainty following regional developments earlier this year, global liquefied petroleum gas (LPG) exports showed signs of recovery in May, averaging around 4.8 million barrels per day. Algeria was among the countries that contributed significantly to this rebound, alongside other major energy producers. Industry data suggests that shipments toward Asian markets are expected to strengthen further during the final days of the month.
Algeria’s strong export performance is supported by its production capacity and relatively low domestic demand. The country currently holds the position of largest Arab LPG producer within the Organization of Arab Petroleum Exporting Countries (OAPEC), with production reaching 293,800 barrels per day in 2024 according to sector data.
On the global level, Algeria is also among the leading producers, generating approximately 9.4 million tons of LPG in 2023 and ranking as the world’s second-largest supplier after Saudi Arabia. Domestic consumption represents less than 20% of overall production, allowing larger export volumes to reach international markets.
A major part of this export capacity comes from industrial infrastructure in Arzew, where Sonatrach operates the GP1Z and GP2Z facilities. Together, these complexes provide a liquefaction capacity estimated at 10.4 million tons annually, reinforcing Algeria’s ability to sustain large export flows.
Europe continues to represent a strategic market for Algerian LPG due to geographical proximity and lower transport costs. However, stronger momentum is increasingly coming from Asia, particularly China. Data from the specialized market intelligence platform Kpler indicates that Algerian LPG exports to China rose by 50% over the past year, reaching 8,000 tons. The increase reflects a broader trend that has been developing since 2021 as Algeria expands its reach in Asian energy markets.
The country is also strengthening its commercial and strategic partnerships. In late March, Minister of State for Energy and Mines Mohammed Arkab held discussions in Algiers with representatives from Qatar’s Power International Holding Company. Official discussions focused on LPG marketing partnerships and broader cooperation opportunities in exploration, production, transport infrastructure and distribution activities.
Future projections indicate that Algeria’s role in international LPG markets could continue expanding. According to forecasts from British consulting firm Algos Consulting, Algerian LPG exports could rise by an additional 6.3 million tons over the next two years. Production is expected to reach approximately 10 million tons annually by 2029, further strengthening the country’s position in global energy supply chains.
Sami B. is the founder and editor of Algeria News Gate, an independent English-language platform covering Algeria’s political, economic, and business developments. Based in Europe, he reports on official announcements, economic trends, and international relations involving Algeria.