Sonatrach and Total Energies Announce $700 Million Investment in LPG

Algerian Sonatrach and France’s Total Energies have signed $700 million contracts for liquefied natural gas trading, as well as a memorandum of understanding on energy transition and renewables.

And Sonatrach said in a statement today, Sunday, that “President and CEO of Sonatrach, Mr. Toufik Hakkar, and President and General Manager of Total Energies, Mr. Patrick Pouyanny, signed at Sonatrach Headquarters, two contracts for hydrocarbons and a contract related to the expansion of contractual obligations between Sonatrach and Total Energies for the sale and purchase of liquefied natural gas, as well as a memorandum of understanding in the field of energy transition and renewable energy sources.

According to the report, the contracts for hydrocarbons relate to fields that are operated in partnership, namely the TPT and TPT-2 fields in the south.

The TFT-2 contract provides for investments in the amount of about $332 million, which will allow the production of 43 billion cubic meters of gas, 4.3 million tons of condensate and 5.7 million tons of liquefied petroleum gas.

Investments under the second TFT contract are estimated at $407 million, which will allow the production of 11.5 billion cubic meters of gas, 1.3 million tons of condensate and 1.6 million tons of liquefied hydrocarbon gas.

Thus, according to the statement, the joint production of the TPT and TPT2 blocks by 2026 will exceed 100,000 barrels of oil equivalent. per day compared to current production of about 60,000 bbl. AD per day.

On the other hand, the agreements signed in the field of liquefied natural gas concern the expansion of contractual obligations between Sonatrach and Total Energies for the purchase and sale of liquefied natural gas.

According to the statement, “both sides confirm through these agreements the strengthening of their commercial partnership, which allows them to play an important role in supplying the French and European markets with gas, as well as contributing to the energy security of consumers. “

In addition, the statement said that Hokkar and Bojani signed a memorandum of understanding in the field of energy transition and renewable energy, reflecting the desire of the two groups to expand their partnership to include the areas of sustainable development and environmental protection, and thus fully participate in national energy transition policies.

It is noteworthy that on July 25, Sonatrach announced the discovery of two gas and one oil fields in partnership with the Italian company Eni.

On July 19, Sonatrach signed contracts with a number of foreign companies, including US Occidental, Italy’s Eni and France’s Total Energies, to invest $4 billion in the energy sector.

The Sonatrach Group announced at the end of March that the value of its exports exceeded $60 billion in 2022, indicating a 2 percent increase in primary hydrocarbon production over the same period.

Source: Sputnik