TotalEnergies announced in a statement that it has signed, several agreements to strengthen the cooperation between the two companies in the production of natural gas in Algeria, the delivery of liquefied natural gas (LNG) to Europe, as well as the development of renewables in Algeria.
1. Natural gas: increased production at the Tin Fouyé Tabankort fields
Under a first agreement, which remains subject to the approval of the Algerian authorities, SONATRACH and TotalEnergies have agreed to convert the production contracts for the Tin Fouyé Tabankort II (TFTII) and Tin Fouyé Tabankort Sud (TFT sud) fields in southern Algeria (Sonatrach 51%, TotalEnergies 49%) to the framework established by the new Algerian Petroleum Law enacted on December 11, 2019.
In this context, SONATRACH and TotalEnergies will pursue the investment program already launched to increase the gas production of TFTII and TFT South, which includes the upgrade of existing facilities and the drilling of additional wells. The combined production of the two fields is expected to exceed 100,000 boe per day by 2026, versus a level of around 60,000 boe per day in 2022, thus increasing the potential export of Algerian gas to the European market.
2. European energy security: additional LNG deliveries
Under a second agreement, Sonatrach and TotalEnergies have extended for the year 2024 deliveries by SONATRACH of 2 million tons per year of LNG to TotalEnergies at the port of Fos-Cavaou, near Marseille, France. These deliveries of Algerian liquefied natural gas contribute directly to energy security in France and Europe.
3. Energy transition: developing renewables in Algeria
Under a third agreement, TotalEnergies and SONATRACH will cooperate to develop renewable energy projects in Algeria, specifically:
- Renewables projects to solarize exploration and production sites for oil and gas;
- A study of the potential for renewable, low-carbon hydrogen for the export market;
- An R&D program in low carbon energies and the energy transition.
