Sonatrach to increase gas supplies to Germany from January 2027
The increase follows a June agreement on hydrogen and methane, and VNG has been importing Algerian gas since 2024.
The Algerian energy group Sonatrach plans to increase its natural gas deliveries to Germany from 1 January 2027, ObservAlgerie reported, citing Tadamsa News.
The deal was signed on 16 July in Berlin, during the official visit to Germany of President Abdelmadjid Tebboune.
Nour Eddine Daoudi, chief executive of Sonatrach, and Ulf Heitmüller, chairman of the management board of the Leipzig-based gas group VNG, signed the agreement. Mohamed Arkab, minister of hydrocarbons, and Frank Wetzel, German state secretary for economy and energy, attended the signing.
The agreement raises the amount of gas that Sonatrach supplies to VNG. The companies have not given the extra volumes, gas prices or length of the new deal.
VNG began importing Algerian gas in 2024, becoming the first German importer to buy directly from Sonatrach.
Heitmüller said VNG needs several sources of supply to meet the energy needs of its customers, as markets and regulations change.
Wetzel said Algeria was a reliable partner for Germany. He added that Algeria contributes to natural gas supplies for the European Union.
On 17 June, the two companies also signed a memorandum of understanding covering green hydrogen, ammonia and reducing methane emissions.
Sonatrach and VNG also take part in the Algeria to Europe Hydrogen Alliance (ALTEH2A) and the SoutH2 Corridor initiatives. They aim to build the infrastructure needed to transport hydrogen between Algeria and Europe.
The two companies have worked together since December 2022, and their cooperation has since been extended to new projects.
Show sources (1)
Start the conversation
Add what you know, ask a question or share your view.
Signing in takes one code sent to your email. No password.