The escalation of diplomatic tensions between France and Algeria has raised fears of retaliatory measures against French companies, particularly hydrocarbon companies. However, dependence on the Franco-Algerian trade is limited.
Following its position on the question of Western Sahara, Algiers withdrew its French ambassador on July 30. This escalation in Franco-Algerian tensions could threaten the interests of French companies operating in Algeria.
Among the companies that could be affected by retaliatory measures are hydrocarbon exploration and production companies. Totalenergies holds interests in several gas fields, notably to deliver its LNG terminal at Fos-sur-Mer. The company also distributes lubricating products. The other major group operating in Algeria is Engie, for the import of gas in liquid form.
Apart from these behemoths, the presence of French companies in Algeria is more limited. According to Medef International, there are around 450 companies established in Algeria that directly employ around 40,000 employees.
Limited dependence on Franco-Algerian trade
In 2021, in fact, before a peak in diplomatic tensions, Suez and RATP had already left the territory. The RATP had lost the management and maintenance of the Algiers metro. Suez also lost its contract with the water management company Seal for the distribution of water in the capital.
Today, it is exchanges linked to gas that are particularly scrutinized. But if tensions were to worsen, French dependence on Algerian gas remains limited. Only 8% of gas imported into France comes from Algeria. France has greatly diversified its supplies since the war between Russia and Ukraine, particularly by obtaining supplies from Norway and the United States.
