Sonatrach, Total Extend LNG Agreement
Algeria’s state oil and gas company Sonatrach has renewed its supply of liquefied natural gas (LNG) to French oil and gas giant Total for a further three years.
Sonatrach will use the terminal at Fos Cavaou to deliver 2 million tons per annum (Mtpa) of LNG to the French market. According to Total, the agreement also includes the sub-charter of an LNG tanker from Total by Sonatrach and the option to extend the deal for another three years.
Sonatrach’s CEO Toufik Hakkar said the deal “confirms its status as a reliable partner, respecting its contractual commitments and enjoying a certain credibility on the international energy market.”
Total is the second-largest LNG player globally with, a 10% global market share. The French giant is targeting a portfolio of 50 Mtpa by 2025, as it focuses on gas on combatting climate change.
“This new contract contributes to the flexibility of Total’s LNG portfolio and strengthens our position as a major partner of Sonatrach,” said Laurent Vivier, President Gas of Total.
Total has been a historic player in Algeria’s energy sector for almost 70 years. The group is active in oil and gas exploration and production – with participating interests in the TFT II and Timimoun gas fields and in the oil fields of the Berkine basin – as well as in liquefied natural gas through supply contracts with Sonatrach.