Algerian hydrocarbon giant Sonatrach announced on Sunday that it had signed new contracts with TotalEnergies. In addition, to enable the two companies to consolidate their “key role” in supplying gas to the French and European markets.
New contracts to reinforce their key role in French and European gas supply.
The contracts were signed at Sonatrach headquarters in Algiers by CEO Toufik Hakkar and his counterpart Patrick Pouyanne. These include two hydrocarbon contracts and a contract for the extension of liquefied natural gas (LNG) supply commitments.
The two hydrocarbon contracts concern the TFT II and TFT Sud fields in the Tin Fouyé Tabankort (TFT) Saharan gas field in south-east Algeria. Already operated under a partnership involving investments of around $740 million for the production of gas, condensate and liquefied petroleum gas (LPG).
Under the terms of the new contracts, “combined production from the two perimeters TFT II and TFT South will exceed 100,000 barrels of oil equivalent per day by 2026, compared with current production of around 60,000 barrels of oil equivalent per day”, according to the press release.
As for the LNG contract, it “concerns the extension of contractual commitments between Sonatrach and TotalEnergies for the sale/purchase of LNG”, the press release adds, without providing any figures.
“Through these agreements, the two parties confirm and consolidate their commercial partnership, which enables them to play a key role in supplying gas to the French and European markets, contributing to the energy security of consumers”, the press release stresses.
A desire to strengthen political and energy ties between Algeria and Europe
At the same ceremony, the two CEOs signed “a memorandum of understanding in the field of energy transition and renewable energies”. Algeria is Africa’s leading exporter of natural gas. Keen to diversify their supplies to reduce their dependence on Russian hydrocarbons, several European countries – notably Italy – have turned to Algerian gas.
The head of European diplomacy, Josep Borrell, stated in Algiers in March that the European Union (EU) wanted to develop its energy partnership with Algeria. Some “90% of Algerian gas exports go to Europe, and we know that we can count on Algeria as a reliable partner, as it has been in difficult times”, he said.
