Tunisia and Algeria Advance Combined Cycle Power Plant Project

Tunis and Algiers have agreed to move forward with the realization of a major energy project, with technical discussions set to open soon between the Tunisian Electricity and Gas Company (STEG) and the Algerian energy group Sonelgaz.

Project Overview

The initiative centers on the development of a combined cycle power plant. A Tunisian technical delegation is scheduled to travel to Algeria to examine with Algerian officials the various parameters necessary for the project’s implementation. Slah Zouari, the Tunisian minister overseeing the Ministry of Industry, Mines, and Energy, noted that the total investment amount will be determined at a later stage.

Background and Recent Developments

This initiative is not entirely new. On May 24, 2026, Algerian Minister of Energy and Renewable Energies Mourad Adjal received a STEG delegation led by CEO Fayçal Trifa. The discussions focused on:

• A proposal for a 1,400 MW combined cycle power plant in Tunisia.
• Electricity supply arrangements for Tunisia.
• The interconnection of power grids between Algeria, Tunisia, and Libya.

The key development now is the transition from a preliminary proposal reviewed by both parties to a phase more focused on the technical conditions for implementation.

Current Status and Strategic Importance

At this stage, several critical details have not yet been publicly finalized, including:

• The specific site for the power plant.
• The total project cost.
• The financial structuring.
• The distribution of investments between the two countries.
• The commissioning schedule.

Therefore, it is premature to declare that construction has already begun. However, with a capacity of 1,400 MW, the future power plant would represent a major asset for the Tunisian electricity system. This project fits within a framework of significant existing energy cooperation between the two nations, as Algeria regularly supplies electricity to Tunisia, and both operators, STEG and Sonelgaz, are actively seeking to strengthen their partnership.