TotalEnergies Strengthens LNG Trade Ties with Algeria
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The MoU builds upon previous agreements signed between TotalEnergies and Sonatrach in 2023 totaling more than $700 million and aimed at enhancing partnership in Algeria’s gas production and LNG distribution to Europe. Sonatrach is expected to deliver two million tons of LNG to TotalEnergies in 2025 – after the two companies extended their supply contract – with a view to securing energy supplies in France and Europe. These agreements speak to the critical role of collaboration between NOCs and international energy companies in harnessing Africa’s gas resources for enhanced energy security, as well as maximizing the development of mature assets.
Brought online in March 2018, the Timimoun gas field development is expected to produce approximately 160 million cubic feet per day and is owned and operated by a joint venture between Sonatrach, TotalEnergies and Spain’s CEPSA, with Sonatrach responsible for marketing gas production. The development comprises onshore gas-gathering facilities, a gas treatment plant and processing site, as well as a 180-km pipeline to transport gas to the Hassi R’Mel gas hub. The Invest in African Energy 2025 Forum in Paris – Africa’s premier project showcase taking place outside of the continent – will outline opportunities for international companies to engage and invest in Africa’s gas and LNG space, amid rising global demand.
Ramping up gas production and the development of associated infrastructure is a top priority for Algeria, who is already a strategic gas exporter to Europe and aims to increase production to 200 billion cubic meters over the next five years. To achieve this target, Algeria plans to invest $50 billion in oil and gas projects, with Sonatrach alone investing $8.8 billion in 2024 as part of an investment program extending through 2027. Roughly 71% of the funds will be allocated to exploration and production, 18% to petrochemical projects, 5% to gas liquefaction and the remaining to the national pipeline network. Algeria’s southwestern region – which is home to the Timimoun field, as well as the Touat, Ahnet, In Saleh and Reggane North field gas projects – is a key target for expanded gas production.
Uniting the global investment community, the IAE Forum in Paris will highlight other gas sector developments within the region. Countries like Libya and Egypt, who are also well positioned to supply gas to Europe, are seeking to increase output through greenfield and brownfield gas projects, while producers like Nigeria are set to capitalize on new pipeline infrastructure linking West Africa with Europe. These developments and more will be discussed at the upcoming forum, with a view to driving new supply deals, work programs and gas exploration and monetization activities across the continent.
IAE 2025 is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 14-15, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit www.invest-africa-energy.com. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.