Laghouat Province

Laghouat Province hosts Hassi R'Mel, Algeria's largest natural gas field and one of Africa's most significant hydrocarbon deposits. The province contributes approximately $50 billion to national GDP and generates over $20 billion in annual exports—making it the second most important energy region after Ouargla. A $2.3 billion modernization project (Boosting III) launched in 2024 with Baker Hughes and Tecnimont will extend production from this aging but still-productive field.

Nicknamed "Gateway to the Sahara," "capital of the steppe," and "bride of the Saharan Atlas," Laghouat sits where the Atlas foothills meet the northern fringe of the desert. This edge position made it a traditional crossroads on the route linking Algiers with central Africa. The province now hosts Algeria's largest solar photovoltaic plant—60 MW across 120 hectares—pointing toward an energy future beyond gas.

The traditional oasis economy persists alongside industrial extraction: 3 million sheep graze the steppe, palm groves line the wadis, and small-scale agriculture continues. But the same factors that make hydrocarbon extraction economically dominant—concentrated high-value resource, established infrastructure, export pipelines—also create path dependence. Laghouat demonstrates how resource abundance shapes regional destiny, attracting investment that reinforces extraction while alternative economies struggle to compete for capital and attention.