French multinational integrated oil and gas company, Total, and Sonatrach, the national state-owned oil company of Algeria, have signed an agreement to renew their partnership in the field of liquefied natural gas (LNG).
The agreement allows the extension of existing supply contracts for an additional three years in order to provide 2 million tonnes per year of Algerian LNG to the French market, primarily through the LNG terminal at Fos Cavaou.
The agreement also includes the sub-charter of an LNG tanker of Total by Sonatrach.
President Gas at Total, Laurent Vivier, said that the agreement is part of the long history of cooperation between the two companies.
“Thanks to the quality of our relationship we were able to conclude it in an extremely volatile market environment. This new contract further enhances the flexibility of Total’s LNG portfolio and strengthens our position as a major partner of Sonatrach.”
CEO of Sonatrach, Toufik Hakkar, also commented: “Sonatrach confirms its status as a reliable partner, respecting its contractual commitments and enjoying a certain credibility on the international energy market.”
Total’s activities in Algeria
Total has been a historic player in the energy sector in Algeria for almost 70 years.
The group is active in oil and gas exploration and production (participating interests in the TFT II and Timimoun gas fields and in the oil fields of the Berkine basin), as well as in LNG through supply contracts with Sonatrach.
The group is also active in the marketing of lubricants and bitumens. In addition, Total and Sonatrach have launched engineering studies for a petrochemical project in Western Algeria.