Sonatrach, Germany’s VNG sign natural gas supply deal

ALGIERS - Sonatrach Group and the German company VNG signed a natural gas supply agreement, as part of the official visit to the Federal Republic of Germany by the President of the Republic, Abdelmadjid Tebboune, Sonatrach noted in a statement issued Sunday.

The agreement was signed on Thursday by Sonatrach’s CEO, Nour Eddine Daoudi, and the Chairman of the Board of Directors of the German energy group VNG, Ulf Heitmüller, during a ceremony co-chaired by Minister of State and Minister of Hydrocarbons Mohamed Arkab, and German State Secretary at the Federal Ministry for Economic Affairs and Energy Frank Wetzel, and was attended by Jochen Flasbarth, State Secretary at the Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety, the source stated.

According to the statement, the agreement will strengthen the commercial ties between Sonatrach and VNG through increased natural gas deliveries to the German market starting from January 1st, 2027.

The statement recalled that Sonatrach and VNG are partners in the projects "Algeria to Europe Hydrogen Alliance" (ALTEH2A) and "SoutH2 Corridor", which aim to produce hydrogen in Algeria and export it to Europe.

The two companies are also linked by a memorandum of understanding (MoU) covering the exploration of cooperation opportunities in areas of common interest, particularly green hydrogen and the reduction of methane emissions.

The signing of this agreement confirms the strong cooperation between Sonatrach and VNG and reflects the excellent Algerian-German relations, the statement concluded.