German energy giant VNG AG announced a landmark agreement with Algerian state-owned oil and gas firm Sonatrach, marking the first-ever pipeline gas deal between the two countries.
This move signifies Germany’s diversification of energy sources after its reliance on Russian gas was severed by the Ukraine invasion.
“We are delighted to strengthen our energy partnerships with Europe through this landmark agreement with VNG,” stated Sonatrach CEO Rachid Hachichi, highlighting the deal’s importance.
This agreement makes VNG the first German company to import pipeline gas directly from Algeria, according to VNG CEO Ulf Heitmüller.
While the specifics of the contract’s duration and value remain undisclosed, the deal involves VNG Handel & Vertrieb GmbH, a wholly-owned subsidiary of VNG AG based in Leipzig.
This new partnership comes at a crucial juncture for Germany, which has been actively seeking alternative gas suppliers since Russia halted its supplies in February 2022.
Algeria, boasting an annual gas production of 106 billion cubic meters as per Sonatrach figures, emerges as a significant player in fulfilling Germany’s energy needs.
This agreement marks a strategic shift in European energy dynamics, showcasing Germany’s efforts to secure reliable gas supplies beyond traditional sources.
