Algeria-Germany: Sonatrach Signs Contract with VNG to Supply Germany with Natural Gas
BY: Dr. Hana Saada
ALGIERS- In a significant move to bolster energy partnerships between Algeria and Europe, Sonatrach, Algeria’s national hydrocarbon company, inked a historic contract with VNG Handel & Vertrieb GmbH, a subsidiary of VNG AG, to supply natural gas to Germany on a medium-term basis. The signing ceremony, presided over by Algerian Minister of Energy and Mines Mohamed Arkab and German Vice-Chancellor and Federal Minister for Economic Affairs and Climate Robert Habecka, witnessed the participation of top officials from both companies and the German Ambassador to Algeria, Ms. Elizabeth Wolbers.
Expressing his satisfaction with the enhanced energy partnership with Europe, Sonatrach’s CEO, Mr. Rachid Hachichi, stated, “We are pleased to strengthen our energy partnership with Europe through this historic contract with VNG, which marks the beginning of natural gas deliveries to Germany.” He further emphasized the potential for expanding this commercial cooperation in the future to include other areas of the energy value chain, such as hydrogen.
Mr. Ulf Heitmüller, CEO of VNG, echoed this sentiment, noting, “We are delighted to have concluded a medium-term gas supply contract with Sonatrach. VNG becomes the first German company to purchase gas via pipeline from Algeria.” He highlighted the importance of this contract in fostering a trusting relationship in terms of energy supply, opening new avenues, and strengthening the Algerian-German energy partnership.
Highlighting the significance of Algerian natural gas for ensuring energy security, Mr. Heitmüller indicated VNG’s intention to establish a long-term partnership with Sonatrach in the hydrogen sector. He mentioned plans to import green hydrogen from Algeria to Germany in the future, further solidifying the energy ties between the two nations.
In addition to the gas supply agreement, Sonelgaz, Algeria’s state-owned electricity and gas utility, signed a memorandum of understanding (MoU) with the German Solar Industry Association (BSW-Solar) to enhance technical capacities through the exchange of expertise in solar energy. This collaboration aims to master technical skills for local manufacturing and integration of solar energy equipment in Algeria.
Furthermore, another MoU was signed between a private Algerian company and a German firm specializing in battery production for renewable energy sectors. This ten-year partnership aims to advance battery technology and contribute to the growth of the renewable energy sector in Algeria.
These agreements underscore the commitment of Algeria and Germany to deepen their energy cooperation, diversify energy sources, and promote sustainable development in both countries.
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