BY: Dr. Hana Saada
ALGIERS- In a significant development, the Algerian state-owned energy company Sonatrach and the French multinational energy company TotalEnergies have inked a Protocol of Agreement in Algiers on Monday, April 8, 2024. This protocol paves the way for a hydrocarbon contract in the North-East region of Timimoun, under the auspices of Law No. 19-13 governing hydrocarbon activities.
The Protocol of Agreement outlines a program of works aimed at assessing and developing the gas resources in the North-East region of Timimoun. It leverages existing treatment facilities for the Timimoun gas field production to reduce costs and emissions.
Following the signing of the Protocol of Agreement, TotalEnergies revealed in a statement the quantity of liquefied natural gas (LNG) it will receive from Sonatrach in 2025 as part of previously signed agreements.
“Earlier this year, TotalEnergies and Sonatrach extended their cooperation in the liquefied natural gas (LNG) domain by extending their contractual relationship until 2025,” highlighted the French company. It disclosed, “Accordingly, Sonatrach will deliver two million tonnes of LNG to TotalEnergies in 2025 at the Fos-Cavaou port near Marseille, contributing to the energy supply security of France and Europe.”
TotalEnergies also shared that in 2023, it produced 51 kbep/d (net to TotalEnergies’ interest) in Algeria, thanks to its interests in gas fields such as TFT II and Timimoun, as well as oil fields in the Berkine Basin (blocks 404a and 208). Additionally, TotalEnergies operates two subsidiaries engaged in lubricants and bitumen.
In 2023, French imports of Algerian goods increased by 8%, reaching 7.3 billion euros, primarily consisting of hydrocarbons. Notably, 6 billion euros of France’s total imports from Algeria were hydrocarbons, marking a 15.3% increase. Specifically, French imports of Algerian hydrocarbons comprised 51.8% liquefied or gaseous natural gas (up 30.1% to 3.1 billion euros) and 48.2% crude oil (up 5.6% to 2.9 billion euros), according to French Customs data.
During French President Emmanuel Macron’s visit to Algeria in August 2022, discussions included the topic of increasing Algerian LNG deliveries to France, amid tensions over energy supply following the war in Ukraine. Media sources, particularly French outlets, had reported Algeria’s agreement to increase its deliveries to France by 50%.
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