Algeria's state-owned power company, Sonelgaz generates and distributes electricity and natural gas to the entire country. Established in 1969, Sonelgaz generates 6,468 megawatts of electricity a year and is made up of 22 subsidiaries and 20,837 employees, as of December 2006. The company is responsible for network management, maintenance, engineering, conversion, planning studies, elaboration of tender documents, supervision and training.

Sonelgaz signed a USD1.2 billion (DZD83.2 billion) in turnkey contracts with Alstom, Ansardo Energia and General Electric in June 2007, for the construction of five new power stations to boost its production capacity to 10,000 megawatts, by 2010.

Sonelgaz began a DZD648.5 billion (USD9.43 billion) expansion plan in 2005 to be completed in 2009, which includes the allocation of DZD444 billion (USD6.4 billion) for power generation and DZD208.3 billion (USD3.03 billion) for gas distribution and transportation networks. The company also awarded a USD28.6 million (DZD1.9 billion) contract, in September 2005, to Bosnia?s Energoinvest to build and equip a 120km (74.5 miles)/400kw power transmission line, part of a plan to install 6,000km (3,728 miles) of new high-voltage power lines and 70,000km (43,495 miles) of power lines to the domestic distribution network by 2011.