Sonatrach to supply gas to Germany's VNG

Algerian state-owned energy company Sonatrach has entered into an agreement to supply gas to Germany's VNG Handel & Vertrieb, a subsidiary of VNG, it said on February 8. 

“We are pleased to strengthen our energy partnership with Europe through this historic contract with the company VNG, which marks the start of deliveries of natural gas to Germany,” Sonatrach CEO Rachid Hachichi said in a statement.

Germany, seeking to diversify its energy sources, has actively pursued new suppliers following Russia's invasion of Ukraine in February 2022, which ended Germany's dependence on Russian gas. The agreement with Sonatrach aligns with Germany's commitment to securing alternative and diversified gas supplies.

“We are delighted to have been able to conclude a medium-term gas supply contract with Sonatrach. VNG thus becomes the first German company to purchase gas via pipeline from Algeria,” Ulf Heitmuller, CEO of Leipzig-based VNG, stated.

“The purchase of Algerian gas via pipeline to Germany constitutes an additional diversification of VNG's purchasing portfolio,” Heitmuller added. 

Sonatrach did not disclose the value of the deal or the volumes of gas it will supply.