TotalEnergies, Sonatrach strengthen gas partnership

A number of agreements were signed to strengthen the partnership between Sonatrach and TotalEnergies in the production of natural gas, the delivery of liquefied natural gas (LNG) to Europe, and the advancement of renewable energy in Algeria during a meeting held on July 10, in Algiers.

 

Under a first agreement, which remains subject to the approval of the Algerian authorities, Sonatrach and TotalEnergies 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 (Sonatrach 51 per cent, TotalEnergies 49 per cent) to the framework established by the new Algerian Petroleum Law enacted on December 11, 2019.

 

These are the first conversions of contracts in Algeria under the regime of the new Petroleum Law.

 

In this context, Sonatrach and TotalEnergies will pursue the investment program already launched to increase the gas production of TFTII and TFT South, which includes the upgrade of existing facilities and the drilling of additional wells.

 

The combined production of the two fields is expected to exceed 100,000 boe per day by 2026, versus a level of around 60,000 boe per day in 2022, thus increasing the potential export of Algerian gas to the European market.

 

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

 

TotalEnergies and Sonatrach have also signed a third deal to examine the development of projects to produce renewable energy in Algeria, specifically renewables projects to solarise exploration and production sites for oil and gas, and to power seawater desalination plants, a project to produce renewable, low carbon hydrogen for the export market, and an R&D program in low carbon energies and the energy transition.

 

The agreements were signed by Patrick Pouyanné, Chairman and CEO of TotalEnergies, and Toufik Hakkar, Chief Executive Officer of Sonatrach.

 

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 happy to support Algeria in the energy transition, by examining and developing its huge potential for renewables production." -TradeArabia News Service

 

Source: https://www.tradearabia.com/news/OGN_411160.html

 

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