Sonatrach, TotalEnergies extend LNG supply deal

French energy giant TotalEnergies and Algeria’s Sonatrach have extended their liquefied natural gas (LNG) supply deal for 2 million tons per year.

TotalEnergies announced on Monday that the two firms signed several agreements to strengthen their, cooperation including for the production of natural gas in Algeria, the delivery of LNG to Europe, as well as the development of renewables in Algeria.

Back in 2020, the two firms extended their existing LNG supply contract for 3 additional years in order to provide 2 million tons per year of Algerian LNG to the French market, primarily through the LNG terminal at Fos Cavaou.

Now Sonatrach and TotalEnergies have extended for the year 2024 deliveries by Sonatrach of 2 million tons per year of LNG to the port of Fos-Cavaou, near Marseille, according to the French firm.

These deliveries of Algerian LNG contribute directly to energy security in France and Europe, TotalEnergies said.

France’s Elengy operates the Fos Cavaou LNG terminal, while Sonatrach operates LNG trains in Skikda and Arzew.

Algeria became the world’s first LNG producer in 1964 when Sonatrach’s Arzew facility came online.

According to GIIGNL data, Algeria currently has about 25.3 mtpa LNG export capacity at Arzew and Skikda.

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