Algeria is strengthening its energy influence across the Sahel with plans to build liquefied petroleum gas (LPG) infrastructure in Niger, as part of a broader push by state-owned companies to deepen regional cooperation in hydrocarbons and power supply.
Naftal, a subsidiary of state oil giant Sonatrach responsible for fuel distribution, plans to construct three LPG cylinder filling plants in Niger to improve storage and distribution capacity for cooking gas.
The initiative was discussed last week in Algiers during talks between Naftal chief executive Djamel Cherdoud and the head of Niger’s state oil company SONIDEP, Ali Seibou Hassaen, alongside officials from both sides and representatives of Sonatrach.
The discussions took place during a visit by a Nigerien ministerial delegation aimed at strengthening bilateral cooperation in hydrocarbons and petroleum services, reflecting growing energy ties between the two countries.
The planned LPG facilities are intended to address rising demand in Niger, where access to modern energy remains limited and infrastructure development has struggled to keep pace with population growth and urbanisation.
Liquefied petroleum gas is widely used for household cooking, and officials say the new plants are expected to improve supply reliability and reduce dependence on traditional biomass fuels in the long term.
Beyond LPG, the cooperation framework includes potential supplies of unleaded petrol, Jet A1 aviation fuel, bitumen for infrastructure projects, and autogas marketed in Algeria under the Sirghaz brand. The talks also included proposals for technical training of SONIDEP staff in fuel storage, distribution and marketing.
The initiative reflects Algeria’s broader strategy of expanding its economic footprint in the Sahel through energy diplomacy, leveraging its state-owned enterprises to build long-term commercial and strategic partnerships.
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In recent years, Algeria has stepped up similar projects across the region. In 2025, state utility Sonelgaz announced plans for a 40-megawatt power plant in Niger, alongside upgrades to transmission infrastructure and technical training programmes. Niger’s electricity access rate remains low, estimated at under 20%, underscoring the scale of the challenge.
Sonatrach has also resumed drilling operations in Niger’s Kafra oil block under a production-sharing agreement with SONIDEP, further expanding its upstream presence near the Algerian border.
Elsewhere in the region, Algeria has extended its energy outreach to Chad, where Sonatrach recently completed its first LPG delivery and Sonelgaz is preparing another power generation project.
Analysts say Algeria’s strategy reflects a growing effort to convert its hydrocarbon production strength into regional influence, particularly in neighbouring Sahel states where energy deficits remain severe.
Sonatrach is among the world’s largest LPG exporters, ranking second globally after the United States in 2024, with exports of about 6.1 million tonnes.
For Niger, the partnership could help ease chronic energy shortages and improve access to cleaner cooking fuels. However, analysts caution that implementation capacity, financing, and security conditions in the Sahel will be critical factors determining the success of such infrastructure projects.
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As regional energy competition intensifies, Algeria’s move highlights how North African producers are increasingly positioning themselves as key suppliers and infrastructure partners for West Africa’s fast-growing energy markets.
