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Algeria and Slovenia extend natural gas supply contract through 2027

Simon Osuji by Simon Osuji
May 17, 2025
in Energy
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Algeria and Slovenia extend natural gas supply contract through 2027
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Algeria and Slovenia have extended their long-term energy partnership with a two-year renewal of their natural gas supply agreement, securing uninterrupted deliveries through 2027. 

Algeria’s state-owned energy company Sonatrach and Geoplin, Slovenia’s leading natural gas supplier, formalized the deal during a signing ceremony in Ljubljana, held as part of an official state visit by Algerian President Abdelmadjid Tebboune.

Under the renewed terms, natural gas will continue to flow from Algeria to Slovenia via the Trans-Mediterranean Pipeline (TMP)—a 3,800-kilometre network linking Algeria to Italy through Tunisia and extending into Central Europe. 

This critical infrastructure supplies between one-third and one-half of Slovenia’s annual gas consumption.

The original three-year agreement, signed in 2022 and effective from January 1, 2023, initially provided 300 million cubic meters of gas annually. 

In 2024, this volume increased to 500 million cubic meters, as energy ties between the two nations deepened. 

Geoplin, a subsidiary of the Petrol Group, said that the deal extension ensures stable and reliable natural gas supply for Slovenia, reinforcing national energy security amid growing regional uncertainties.

The agreement comes at a pivotal time, as European countries intensify efforts to diversify energy sources and reduce dependency on Russian gas.

Algeria, rich in hydrocarbons, is emerging as a key energy partner for Europe due to its geographic proximity and robust export infrastructure.

“This extension not only secures Slovenia’s gas needs but also strengthens Algeria’s strategic position in the European energy market,” Sonatrach said. “Algeria continues to prove itself as a dependable supplier committed to long-term partnerships grounded in mutual interest.”

Beyond energy, Algeria and Slovenia signed several bilateral memoranda of understanding covering water management, environmental protection, artificial intelligence, space exploration, and migration, signaling broader cooperation beyond hydrocarbons.

President Tebboune hailed the signing as a milestone in the flourishing Algerian-Slovenian partnership, reiterating Algeria’s readiness to deepen economic collaboration and leverage its vast natural resources for mutual benefit.

As part of its broader energy strategy, Algeria also launched an ambitious five-year licensing round in 2024 to revitalize its upstream oil and gas sector. 

Meanwhile, Sonatrach recently reduced domestic cooking gas prices, citing excess production capacity.

The extension of the Algeria-Slovenia gas deal marks another step in Europe’s evolving energy diversification and reflects Algeria’s role as a stable, long-term energy partner in a rapidly shifting global energy landscape.

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