✏️ BY: Dr. Hana Saada
Algiers- Algeria, May 9, 2024 – Energy cooperation between Algeria and Turkey took center stage during the 12th session of the Algerian-Turkish Intergovernmental Joint Commission on Economic, Scientific, and Technical Cooperation held in Ankara.
One of the key highlights of the meeting was the revelation by Algeria’s Minister of Energy and Mines regarding discussions between Sonatrach and Tosyali for hydrogen production in Algeria. This sector is increasingly attractive to foreign investors due to its competitive production costs and the existence of a sustainable external market, particularly the European Union.
Alongside hydrogen, the fossil energy sector also presents significant investment opportunities, especially with the growing demand in the international market. Sonatrach is in discussions with Turkish groups Botas and Turkish Petroleum (TPAO) to finalize projects in this sector. The Minister of Energy mentioned ongoing discussions between Sonatrach and Tosyali for hydrogen development and between Sonatrach, TPAO, and Botas in the hydrocarbon sector.
Turkey is a crucial market for Algeria, particularly in terms of LNG exports. Algerian LNG exports to Turkey represent over 30% of Algeria’s total exports to Europe. This has played a vital role in meeting Turkey’s domestic energy demand, ensuring energy security amid geopolitical disruptions.
Beyond commercial energy cooperation, Sonatrach and TPAO have also partnered in exploration projects in Algeria’s hydrocarbon sector since 2022. Moreover, there are plans to extend cooperation to the mining sector, with Tosyali being one of the largest investors in Algeria’s steel industry. Tosyali has shown interest in processing iron ore from the Gara Djebilet mine, with a planned production capacity of one million tons per year of iron ore concentrate.
Algeria and Turkey are further exploring opportunities for cooperation in mining exploration. This initiative aligns with Algeria’s policy to valorize its mineral wealth, signaling a broader and deeper partnership between the two countries beyond the energy sector.
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