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Europe Presses Algeria for More Gas as Sonatrach Lifts November LPG Prices

1 November 2026 · Algeria Now

ALGIERS — Algeria's hydrocarbons industry enters November with unusual leverage. Czechia says it has won a preliminary commitment to double its Algerian gas imports, while the state energy group Sonatrach has raised its export prices for liquefied petroleum gas (LPG) by margins well above those of its main regional benchmark.

Czech Deputy Prime Minister Karel Havlíček told reporters in Algiers on 26 October that President Abdelmadjid Tebboune had given a preliminary pledge to increase supplies, during a visit by a delegation led by Prime Minister Andrej Babiš. Czechia currently buys about 200 million cubic metres of Algerian gas a year, and Mr Havlíček said the volume is likely to double. No contract amendment has yet been signed.

Prices climb faster than the benchmark

For November, Sonatrach has set propane at 825 dollars a tonne, up from 670 in October, a rise of about 23 percent. Butane goes to 1,050 dollars a tonne from 750, an increase of about 40 percent. By comparison, Saudi Aramco, whose prices anchor Gulf supplies to Asia, raised propane by 5.9 percent to 720 dollars and butane by 6.8 percent to 780 dollars. Sonatrach's prices are widely used as the reference for the Mediterranean and Black Sea basin, so the decision will be felt by buyers from Turkey to southern Europe. Sonatrach has not published its reasoning; firmer crude prices, winter demand and freight costs are the usual drivers.

Why it matters for Algeria

Hydrocarbons still supply the bulk of Algeria's export earnings and a large share of state revenue. Diversification therefore remains a stated government priority. Europe's search for reliable pipeline supply before winter strengthens Algeria's hand in negotiating longer contracts and better terms.

Upstream, the Ministry of Hydrocarbons launched the Algeria Bid Round 2026 on 19 April, offering seven exploration areas in the provinces of Ouargla, Illizi, Touggourt and El Bayadh. The national hydrocarbons agency, Alnaft, estimates the resources at about 1.8 billion barrels of oil, roughly five years of output at the current rate of nearly one million barrels a day.

What comes next

Bids are due on 26 November, and the signing of contracts with Sonatrach is planned for 31 January 2027. The first test of Algeria's leverage will be whether the Czech understanding becomes a binding amendment, and at what volume and price. A second will be how Sonatrach balances new export commitments against rising domestic demand and existing contracts with other customers.

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Europe Presses Algeria for More Gas as Sonatrach Lifts November LPG Prices

Prices climb faster than the benchmark

Why it matters for Algeria

What comes next

More from Algeria Now

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