PARIS, FRANCE: TotalEnergies, a French energy company, and SONATRACH, the Algerian state-owned oil and gas company, have signed several agreements to strengthen their cooperation in the production of natural gas in Algeria, the delivery of liquefied natural gas (LNG) to Europe, as well as the development of renewables in Algeria.

The agreements were signed during a meeting held on July 9 in Algiers between Patrick Pouyanné, Chairman and CEO of TotalEnergies, and Toufik Hakkar, Chief Executive Officer of SONATRACH, and are subject to the approval of the Algerian authorities.

Under the first agreement, TotalEnergies and SONATRACH have agreed to convert the production contracts for the Tin Fouyé Tabankort II (TFTII) and Tin Fouyé Tabankort Sud (TFT sud) fields in southern Algeria to the framework established by the new Algerian Petroleum Law enacted in 2019. The two companies will pursue an investment program to increase the gas production of the two fields, which is expected to exceed 100,000 barrels of oil equivalent (boe) per day by 2026, versus a level of around 60,000 boe per day in 2022. The increased production will enhance the potential export of Algerian gas to the European market.

Under the second agreement, TotalEnergies and SONATRACH have extended for the year 2024 deliveries by SONATRACH of 2 million tons per year of LNG to TotalEnergies at the port of Fos-Cavaou, near Marseille, France. These deliveries of Algerian LNG contribute directly to energy security in France and Europe.

Under the third agreement, TotalEnergies and SONATRACH will cooperate to develop renewable energy projects in Algeria, specifically:

• Renewables projects to solarize exploration and production sites for oil and gas;
• A study of the potential for renewable, low-carbon hydrogen for the export market;
• An R&D program in low carbon energies and the energy transition.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, said: “I am delighted to sign these new agreements with our strategic partner SONATRACH. They testify to TotalEnergies’ close ties to Algeria, whose resources contribute directly to Europe’s energy supply and security. We are also delighted to be able to support Algeria in its energy transition and in the development of its huge potential for renewable energy production.”

TotalEnergies is a global energy company that produces and markets fuels, natural gas and electricity. The company operates in more than 130 countries and has over 100,000 employees. TotalEnergies is a major player in LNG with a global portfolio of nearly 50 million tons per year by 2025.

SONATRACH is Algeria’s national oil and gas company that operates across the entire hydrocarbon value chain. The company produces over 200 million tons of oil equivalent per year and exports over 90 billion cubic meters of natural gas per year. SONATRACH is also involved in renewable energy projects such as solar power plants.