Oil & Gas

In a significant demonstration of energy cooperation among Arab nations, Algeria has sent a shipment of liquefied natural gas (LPG) to Tunisia to help meet the country's rising domestic demand. The 5,200-ton consignment, which arrived at the port of Bizerte on Saturday, January 18, 2025, will assist Tunisia in stabilizing its energy market during the challenging winter months. This move highlights the ongoing efforts by both countries to work together in addressing the energy challenges faced by Tunisia.

The shipment arrives at a crucial time for Tunisia, which has been grappling with high energy demand due to cold weather and increased domestic consumption. The new LPG cargo reflects Algeria’s continued support for its neighbor and underscores the strong bilateral relations between the two nations. Tunisia, facing an energy crisis exacerbated by declining local production, relies heavily on external imports to meet its energy needs, and this shipment is a vital part of that effort.

Tunisia's energy situation has been worsening in recent years, with its domestic production of crude oil and natural gas declining significantly. Crude oil production has dropped by 14%, while natural gas output has fallen by 25% over the past year. The country’s oil and gas production levels are now at their lowest in decades, and the rising energy import bill has deepened Tunisia's financial strain. The energy trade deficit reached 8.7 billion Tunisian dinars ($2.7 billion) by the end of the third quarter of 2024, reflecting the growing reliance on foreign energy supplies.

To address these challenges, Tunisia is focusing on diversifying its energy sources by investing in renewable energy projects, with plans to have 500 MW of renewable capacity operational by 2026. However, in the near term, continued cooperation with Algeria remains essential to meeting Tunisia’s energy needs. This partnership, exemplified by the regular LPG shipments, serves as a model for regional collaboration. While Tunisia works towards energy sustainability, securing immediate energy supplies through such cooperation is vital for its economic stability.