TotalEnergies and Sonatrach Expand Gas Partnership and Integrate Renewable Energy Sources

Europe: TotalEnergies, a French energy giant, and Sonatrach, Algeria's state-owned company, have signed a series of agreements to strengthen their cooperation in multiple energy-related areas. The agreements cover the production of natural gas, delivery of liquefied natural gas (LNG) to Europe, and the development of renewable energy projects in Algeria. The signing took place during a meeting between Patrick Pouyanne, the CEO of TotalEnergies, and Toufik Hakkar, the CEO of Sonatrach, in Algiers. These deals are set to further enhance the collaboration between the two companies.

Sonatrach and TotalEnergies have agreed to convert production contracts for the Tin Fouye Tabankort II (TFTII) and Tin Fouye Tabankort Sud (TFT sud) fields in southern Algeria. The agreement is subject to approval from the Algerian authorities, and it follows the new Algerian Petroleum Law enacted on December 11, 2019. The conversion of the production contracts will allow the duo to pursue their investment program aimed at increasing gas production in the TFTII and TFT South fields. This includes upgrading existing facilities and drilling additional wells to further enhance production capabilities.

Algeria's gas production is set to increase significantly with TotalEnergies and Sonatrach joining to increase output. According to recent reports, the combined production of two gas fields in Algeria is projected to surpass 100,000 barrels of oil equivalent per day by 2026, marking a significant increase from the current production levels. This increase in production opens potential export opportunities for Algerian gas in the European market. The increased output will result from upgrades to existing facilities as well as drilling additional wells.

TotalEnergies and Sonatrach are teaming up to develop renewable energy projects in Algeria. The two companies have signed an agreement to work together on these initiatives, which will focus specifically on the production of renewable energy. This partnership is a significant step in achieving the country's goal of increasing its renewable energy production capacity. The collaboration aims to leverage the expertise of both companies to drive renewable energy development in the region.

Eni and Sonatrach have come together to address the issue of emissions reduction, signing strategic agreements to accelerate their efforts in this direction while strengthening energy security. The duo has resolved to identify opportunities for reducing greenhouse gas and methane gas emissions, and define energy efficiency initiatives, renewable energy developments, Green Hydrogen projects, and carbon capture and storage (CCS) projects. Their initiative aims to address the pressing concern of environmental pollution and promote cleaner energy sources that are more sustainable in the long run. Meanwhile, TotalEnergies and SOCAR have recently put into production mode a new gas and condensate field in the Caspian Sea offshore Azerbaijan, further bolstering their position as key players in the energy sector.