Algeria’s state oil and gas company, Sonatrach, announced on Thursday it has renewed its supply of liquefied natural gas (LNG) to Total for a further three years, Kallanish Energy reports.
Under the agreement, Sonatrach will deliver 2 million tonnes per annum (Mtpa) of LNG to the French market using the terminal at Fos Cavaou, on a “priority” basis. Financial terms weren’t disclosed.
Total said the agreement also includes the sub-charter of an LNG tanker from Total by Sonatrach, and the option to extend the deal for another three years.
The French major is the second-largest LNG player with a 10% global market share. It’s targeting a portfolio of 50 Mtpa by 2025, as it focuses on gas to fight climate change.
“This new contract contributes to the flexibility of Total’s LNG portfolio and strengthens our position as a major partner of Sonatrach,” said Laurent Vivier, Total’s Gas director.
Sonatrach’s CEO Toufik Hakkar said in a separate statement the deal “confirms its status as a reliable partner, respecting its contractual commitments and enjoying a certain credibility on the international energy market.”
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