The Algerian hydrocarbon giant Sonatrach announced on Sunday the signing of new contracts with TotalEnergies, to enable the two companies to establish their “capital role” in the supply of gas to the French and European market.
The contracts were signed at Sonatrach’s headquarters in Algiers by its CEO Toufik Hakkar and his counterpart from TotalEnergies Patrick Pouyanne, the Algerian company said in a press release.
These are two hydrocarbon contracts and a contract on the extension of the contractual commitments linking Sonatrach to TotalEnergies on supplies of liquefied natural gas (LNG).
The two hydrocarbon contracts relate to the TFT II and TFT South exploitation fields of the Saharan gas site Tin Fouyé Tabankort (TFT), in southeastern Algeria, already operated within the framework of a partnership providing for investments of approximately $740 million for the production of gas, condensate and liquefied petroleum gas (LPG).
Under the new contracts, “the combined production of the two perimeters TFT II and TFT South will exceed 100,000 barrels of oil equivalent per day by the 2026 deadline against current production of approximately 60,000 barrels of oil equivalent per day”, according to the press release.
As for the LNG contract, it “concerns the extension of the contractual commitments between Sonatrach and TotalEnergies for the sale/purchase of LNG”, adds the press release without providing figures.
“Through these agreements, the two parties confirm and consolidate their commercial partnership which allows them to play a key role in the supply of gas to the French and European market, by contributing to the energy security of consumers”, underlines the press release.
During the same ceremony, the two CEOs signed “a memorandum of understanding in the field of energy transition and renewable energies”.
Algeria is the leading African exporter of natural gas. Anxious 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 said in March in Algiers that the European Union (EU) wanted to develop its energy partnership with Algeria.
About “90% of Algerian gas exports go to Europe, and we know that we can count on Algeria, which is a reliable partner and it has been in difficult times,” he said.
This article is originally published on connaissancedesenergies.org