TotalEnergies, Sonatrach sign multiple energy pacts

TotalEnergies and Sonatrach have signed agreements to strengthen cooperation in the production of natural gas, the delivery of LNG to Europe, and the development of renewables in Algeria, TotalEnergies announced on July 10.

The first agreement focuses on the conversion of production contracts for the Tin Fouyé Tabankort II (TFTII) and Tin Fouyé Tabankort Sud (TFT Sud) fields in southern Algeria. Sonatrach and TotalEnergies will convert these contracts to comply with the new Algerian Petroleum Law enacted in 2019. This marks the first contract conversions under the new law in Algeria.

Both companies will invest in upgrading existing facilities and drilling additional wells to increase gas production. The combined production of the two fields is expected to surpass 100,000 boe/d by 2026, contributing to increased exports of Algerian gas to the European market, the French company said.

The second agreement extends the deliveries of 2mn metric tons/year of LNG from Sonatrach to TotalEnergies at the port of Fos-Cavaou, near Marseille, France. This agreement ensures additional LNG deliveries in 2024.

In the third agreement, TotalEnergies and Sonatrach commit to exploring the development of renewable energy projects in Algeria. This includes projects to solarize oil and gas exploration and production sites, as well as to power seawater desalination plants. Additionally, the agreement covers the production of renewable, low-carbon hydrogen for export and establishes an R&D programme focused on low-carbon energies and the energy transition.