Algeria’s Sonatrach returns to Dutch LNG market

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Algeria’s Sonatrach returns to Dutch LNG market
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Algeria’s state-owned oil company, Sonatrach, made a surprise return to the Dutch energy market in May 2026, according to a June 8th report by Observalgerie. It delivered 68,000 tonnes of liquefied natural gas (LNG) to Holland. This was the first delivery to the Netherlands since May 2024.

The Dutch market is not a regular customer for Algeria. The Netherlands usually buys its gas from the United States. In fact, this Algerian shipment made up less than 5% of total Dutch LNG imports for the month. However, according to the patriotic online outlet Observalgerie, the delivery shows that Algeria can quickly seize sales opportunities in a volatile European market.

Global shipping routes face frequent delays and safety issues right now. Because of this, European buyers value suppliers that are close by. Algeria has a major geographic advantage. It can ship gas from its Arzew and Skikda terminals to Europe very quickly as both are located on the Mediterranean Sea, just over a thousand miles from Europe’s southern coast. This makes it faster than competitors across the ocean.

The Dutch sale helped Algeria hit a massive milestone Observalgerie reports. In May 2026, the country exported 1.04 million tonnes of LNG. This was its best export month since October 2025. It marks a 49% jump from April and an 8.3% increase compared to last year.

Despite a great month, long-term problems remain. Total exports for the first five months of 2026 are still down 5% compared to 2025. This is due to a very slow start in January. Furthermore, Algerian citizens and local industries are using more gas at home, leaving less gas available to sell abroad.

To fix this, Sonatrach would like to pump more raw gas. The company is opening new exploration sites to international firms. It is also modernising its main facilities in Arzew to secure more gas for future exports.

Observealgerie, Maghrebi.org.

 

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