Europe Turns to Algeria as Qatar's Gas Exports Plummet Amid War
Austria is seeking digital partnerships and joint investments with Saudi Arabia, while Europe faces a complex gas equation heading into winter. Gas inventories are lower than usual, prices have surged to record highs, and Qatari supplies have been disrupted due to the war in the Middle East.
At the heart of this equation is Algeria, which has emerged as one of the most critical available alternatives for European countries bordering the Mediterranean. Germany is moving to secure long-term contracts for Algerian gas, while Europe's primary concern is not an immediate gas shortage, but a narrow safety margin ahead of the heating season.
The European Union's natural gas consumption reached 339 billion cubic meters in 2025, with domestic production only accounting for 33 billion cubic meters. This leaves the continent heavily dependent on imports. Algeria plays a pivotal role in supplying southern Europe, particularly Italy and Spain, while Germany seeks to secure a share of Algerian supplies.
The European wager on Algeria is not based on replacing one supplier with another, but rather on diversifying supply sources and reducing reliance on any single provider. Qatar's LNG exports have fallen by 96 percent during the first six months of the US-Israel war on Iran, while Russia remains present in the European market despite EU efforts to reduce its reliance.