Sonatrach, Germany’s VNG Sign Expanded Natural Gas Supply Agreement
Algeria’s Sonatrach and German energy group VNG have signed a long-term natural gas supply agreement that will increase deliveries to Germany from January 2027, reinforcing Algeria’s role as a key European energy supplier while expanding bilateral cooperation in hydrogen and energy transition projects.
BY Dr. Hana Saada
ALGIERS — Algeria’s state-owned energy company Sonatrach and German energy group VNG have signed a natural gas supply agreement that will increase Algerian gas exports to the German market beginning 1 January 2027, further strengthening the strategic energy partnership between the two countries.
The agreement was signed on Thursday by Sonatrach Chief Executive Officer Nour Eddine Daoudi and VNG Supervisory Board Chairman Ulf Heitmüller during a ceremony co-chaired by Algeria’s Minister of State and Minister of Energy, Mines and Renewable Energies, Mohamed Arkab, and Frank Wetzel, State Secretary at Germany’s Federal Ministry for Economic Affairs and Energy.
The ceremony was also attended by Jochen Flasbarth, State Secretary at Germany’s Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety, and took place during President Abdelmadjid Tebboune’s official visit to the Federal Republic of Germany, according to a Sonatrach statement issued on Sunday.
Under the agreement, Sonatrach will increase natural gas deliveries to Germany from the beginning of 2027, reinforcing the long-standing commercial relationship between the two energy companies and supporting Germany’s efforts to diversify and secure its energy supplies.
The contract builds on a broader expansion of Algerian-German energy cooperation announced during President Tebboune’s visit, which saw the two countries conclude 31 agreements and memoranda of understanding across strategic sectors, with energy emerging as a central pillar of the partnership.
Beyond conventional natural gas, Sonatrach and VNG are already cooperating on major clean energy initiatives, including the Algeria to Europe Hydrogen Alliance (ALTEH2A) and the SoutH2 Corridor, both of which aim to develop green hydrogen production in Algeria for export to European markets.
The two companies are also linked by a memorandum of understanding exploring broader cooperation in areas of mutual interest, particularly green hydrogen development and methane emissions reduction, reflecting the growing importance of energy transition technologies within their bilateral partnership.
The latest agreement further consolidates Algeria’s position as a reliable long-term energy supplier to Europe while reinforcing the increasingly strategic nature of Algerian-German relations in both conventional and renewable energy sectors.
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