Algeria has launched construction of a US$1.38 billion combined-cycle gas power plant, its second-largest electricity project, as the North African country moves to strengthen domestic energy supply and potentially expand exports to neighbouring Tunisia.
The project was officially inaugurated on Monday by Energy and Renewable Energy Minister Mourad Adjal, marking a major addition to the country’s gas-dominated power sector.
The facility, valued at 184.09 billion dinars, is being built by China National Electric Engineering Co. (CNEEC) in partnership with Sonelgaz Power Generation, a subsidiary of Algeria’s state-owned utility Sonelgaz.
Once completed, the plant will have a capacity of 1,406 megawatts, making it the second-largest power station in the country after the 1,600 MW Jijel facility in the northeast.
Officials say the plant will be located on a 40-hectare site in eastern Algeria near the border with Tunisia, positioning it as a strategic installation for both domestic supply and possible cross-border electricity exports.
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“This project is vital for the national power system. It will help meet rising demand, secure the grid and support broader economic development,” Adjal said in remarks reported by local media.
The plant is expected to become operational within 48 months.
Combined-cycle technology, which will be used in the facility, is considered more efficient than conventional gas-fired systems. It generates electricity using both gas and steam turbines, capturing waste heat from the first stage to power the second. This process can improve efficiency by around 30 percent and reduce fuel consumption.
Algeria relies heavily on natural gas for electricity generation, with gas-fired plants accounting for the vast majority of its installed capacity. The country’s total electricity generation capacity stands at roughly 27,000 megawatts, making it one of the largest power producers in North Africa.
The government has increasingly focused on upgrading its energy infrastructure to meet rising domestic demand driven by population growth, industrial expansion and urbanisation.
At the same time, authorities are seeking to diversify the energy mix through renewable investments. Algeria has launched a programme to add around 3,200 megawatts of renewable energy capacity, including solar power projects, as part of a longer-term transition strategy.
The new gas plant is also expected to strengthen Algeria’s regional energy role. Officials say part of its output could be exported to neighbouring Tunisia, enhancing cross-border electricity trade in North Africa and supporting grid stability in the region.
Energy analysts say Algeria’s continued investment in gas infrastructure reflects both its abundant natural gas reserves and its strategy to maintain energy export revenues while gradually expanding renewable capacity.
The involvement of Chinese engineering firms in major infrastructure projects also underscores deepening industrial ties between Algeria and China, particularly in energy and construction sectors.
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The latest project comes as governments across the region balance rising electricity demand with the need to modernise ageing infrastructure and improve efficiency.
While Algeria remains heavily dependent on fossil fuels for power generation, officials insist that renewable energy development will continue alongside gas expansion, as part of a broader effort to secure long-term energy sustainability and economic resilience.
