Algeria: TotalEnergies Expands Its Partnership with SONATRACH in Timimoun Region and in the Marketing of LNG
TotalEnergies and SONATRACH sign a Memorandum of Understanding for hydrocarbon contract in Timimoun region, focusing on gas resources development. TotalEnergies extends LNG cooperation with SONATRACH until 2025, enhancing energy security in France and Europe.
The Memorandum of Understanding (MoU) between TotalEnergies and SONATRACH is significant for the energy sector, particularly within the context of the global gas market. The collaboration aims to appraise and develop gas resources in Algeria, which could potentially enhance gas supply stability, especially for European markets. The synergy with existing processing facilities is a strategic move to leverage infrastructure for cost efficiency and reduced emissions, aligning with broader industry trends towards more sustainable energy production.
Furthermore, the extension of their LNG cooperation until 2025, with SONATRACH delivering two million tonnes of LNG to TotalEnergies, is a critical development. It underscores the importance of diversifying energy sources and securing energy supply chains in light of geopolitical tensions and the European drive for energy independence. This deal may influence LNG pricing and availability, with implications for energy companies and countries reliant on LNG imports.
The MoU between TotalEnergies and SONATRACH underlines a growing trend in the energy industry towards reducing environmental impact. By focusing on the development of gas resources in an existing field and prioritizing the reduction of costs and emissions, this partnership reflects a strategic alignment with environmental policies and the global transition to cleaner energy sources. The commitment to lower emissions is particularly relevant given the increasing regulatory and social pressures on energy companies to adopt more sustainable practices.
It is also essential to consider the broader implications of such agreements on local ecosystems and communities. The environmental footprint of gas development projects can be significant and therefore the promise of reduced emissions should be scrutinized in terms of actual implementation and adherence to best practices, as well as compliance with local and international environmental regulations.
The extension of the LNG supply agreement between TotalEnergies and SONATRACH until 2025 has implications beyond the energy market; it is also a geopolitical move. Given Europe's current energy supply concerns, this agreement is a strategic maneuver to strengthen energy security. Algeria's role as a key LNG supplier to Europe could become more prominent, affecting Europe's energy diplomacy and its relationships with other major gas suppliers.
Investors should monitor the stability of the region and the bilateral relations between France and Algeria, as any political unrest or diplomatic tension could disrupt the supply chain. The assurance of LNG delivery to the port of Fos-Cavaou is a significant factor in France's energy diversification strategy and could have ripple effects on energy policy decisions within the European Union.
04/08/2024 - 11:05 AM
ALGIERS, Algeria --(BUSINESS WIRE)--
Regulatory News:
TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) and SONATRACH have signed a Memorandum of Understanding with the aim of concluding a hydrocarbon contract in the north-east Timimoun region, under the aegis of Law n°19-13 governing hydrocarbon activities.
This Memorandum of Understanding outlines the realization of a work program for the appraisal and development of gas resources in the North-East Timimoun region, in synergy with existing processing facilities for production from the Timimoun field, to reduce costs and emissions.
"This Memorandum of Understanding reflects our shared willingness to expand our strategic partnership with SONATRACH", said Julien Pouget, Senior Vice President Middle East & North Africa , Exploration & Production at TotalEnergies .
Earlier this year, TotalEnergies and SONATRACH have extended their cooperation in the field of liquefied natural gas (LNG) by extending their contractual relationship until 2025. In 2025, SONATRACH will thus be delivering two million tonnes of LNG to TotalEnergies at the port of Fos-Cavaou, near Marseille , which will contribute directly to the security of energy supply in France and Europe .
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About TotalEnergies in Algeria
TotalEnergies is a long-standing player in the Algerian energy sector. Present in the country through its various subsidiaries. The Company is active in oil and gas exploration and production through its interests in the Tin Fouyé Tabankort and Timimoun gas fields, the Berkine Basin oil fields (Blocks 404a and 208) and liquefied natural gas via supply contracts with Sonatrach. In 2023, the Company produced 51 kboe/d (group share) in Algeria through its interests in the TFT II and Timimoun gas fields and in the Berkine Basin oil fields (blocks 404a and 208). Downstream, TotalEnergies Lubrifiants Algérie SPA and TotalEnergies Bitumes Algérie SPA market lubricants and bitumen. This integrated model ensures synergies between the various activities and provides a comprehensive offering based on innovation, complementarity, and value creation. TotalEnergies is committed to supporting economic development by launching new investment programs that contribute to the country's development.
About TotalEnergies
TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.
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Cautionary Note
The terms “TotalEnergies”, “TotalEnergies company” or “Company” in this document are used to designate TotalEnergies SE and the consolidated entities that are directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or to their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate legal entities. This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Information concerning risk factors, that may affect TotalEnergies’ financial results or activities is provided in the most recent Universal Registration Document, the French-language version of which is filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF), and in the Form 20-F filed with the United States Securities and Exchange Commission (SEC).
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What is the purpose of the Memorandum of Understanding signed between TotalEnergies and SONATRACH in the Timimoun region?
The Memorandum aims to conclude a hydrocarbon contract for the appraisal and development of gas resources in the North-East Timimoun region.
How does the Memorandum of Understanding with SONATRACH aim to reduce costs and emissions?
The work program outlined in the Memorandum will be in synergy with existing processing facilities for production from the Timimoun field, aiming to reduce costs and emissions.
What is the significance of extending the cooperation between TotalEnergies and SONATRACH in the field of LNG?
The extension of the LNG cooperation until 2025 will see SONATRACH delivering two million tonnes of LNG to TotalEnergies at the port of Fos-Cavaou, contributing to energy supply security in France and Europe.
