Contribution to the security of supply and diversification: VNG and SONATRACH strengthen their partnership
The Leipzig-based energy group VNG AG and the Algerian energy company SONATRACH concluded a new gas delivery agreement yesterday, continuing their existing cooperation. The agreement strengthens the diversification of the German and European gas supply, making an important contribution to security of supply. The new agreement extends the existing gas procurement relationship between the two companies. The deliveries from Algeria are to begin in 2027 and will further expand the procurement portfolio of VNG, which was the first German importer to begin procuring natural gas from SONATRACH in 2024.
“Especially in a challenging market environment and against the backdrop of geopolitical, energy policy and regulatory conditions, a broad and resilient supply portfolio is essential. The agreement with SONATRACH is an important component for securing the long-term supply of our customers and increasing the diversification of our portfolio,” says Ulf Heitmüller, CEO of VNG AG.
Moreover, VNG and SONATRACH deepened and expanded their collaboration still further with an additional memorandum of understanding (MoU) that continues their cooperation following the expiry of an initial MoU from 2022. The new MoU includes a review of options for establishing green hydrogen supply chains. It also provides for joint initiatives to reduce methane emissions along the gas value chain in line with the goals of the EU Methane Regulation, which are expressly supported by VNG. The partners further intend to work together more closely in the area of decarbonisation and emissions reduction.
“The current regulatory developments concerning reductions in methane emissions poses new challenges to the market. This makes it all the more important to establish reliable partnerships and foster supportive conditions that bring climate goals and security of supply into alignment. Here as well, we are working very closely with our Algerian partners at SONATRACH,” continues Heitmüller.
“The partnership between SONATRACH and VNG is also a testament to the excellent energy partnership between Germany and Algeria, which has been in place for eleven years. Algeria is the EU’s second-largest supplier of pipeline gas and a trusted partner of Germany. This new supply agreement further diversifies Germany’s gas import portfolio and thereby contributes to strengthening security of supply. Against the backdrop of the current geopolitical environment, new gas supply agreements play an important role in enhancing the resilience of Germany’s gas supply. We also support this cooperation because it goes beyond natural gas deliveries and encompasses intensified collaboration in science and technology, renewable energy, and hydrogen,” emphasizes Frank Wetzel, State Secretary at the Federal Ministry for Economic Affairs and Energy.
“We welcome the conclusion of a gas supply agreement between the Algerian energy producer SONATRACH and the German gas supplier VNG. The agreement makes an important contribution to the diversification of Germany’s energy supply while further strengthening long-term energy cooperation between the two countries. In June, SONATRACH and VNG had already signed a joint Memorandum of Understanding on cooperation in the area of methane emissions. The combination of energy security and climate protection underscores our shared conviction that the sustainable transformation of the energy sector relies on reliable international cooperation,” said Jochen Flasbarth, State Secretary at the German Federal Ministry for the Environment, Climate Protection, Nature Conservation and Nuclear Safety.
VNG is a group of over 20 companies active in the European energy industry with around 2,000 employees. Headquartered in Leipzig, the group is a gas importer and wholesaler as well as an operator of critical gas infrastructure in the areas of natural gas transport and storage, ensuring a secure energy supply in Germany. With our commitment, projects and investments for the market ramp-up of renewable and decarbonised gases such as biogas and hydrogen, we are also creating new perspectives, actively driving change in the energy sector and strengthening our home region. Dependable, approachable and always moving. VNG – Energy. On the move.
VNG Handel & Vertrieb GmbH, based in Leipzig, is a subsidiary of VNG AG and is responsible for the wholesale business within the VNG Group. It supplies natural gas reliably and flexibly to trading companies, redistributors, municipal utilities and major customers in Germany and abroad. With innovative products for an environmentally friendly energy supply, it offers its customers comprehensive support for the implementation of the energy transition. As a natural gas wholesaler and energy service provider, VNG Handel & Vertrieb GmbH has close ties to its local region and is internationally well-placed. With its staff, it draws on 60 years of experience.
For more information, visit: www.vng-handel.de.
ABOUT SONATRACH
For more information, visit: www.sonatrach.com
Pressebild
Contract signing in Berlin. Front row (from left to right): Ulf Heitmüller (CEO of VNG AG) and Nour Eddine Daoudi (CEO of SONATRACH). Back row (from left to right): Jochen Flasbarth (State Secretary at the BMUKN), Frank Wetzel (State Secretary at the BMWE), Yahia Bachir (Algerian Minister of Industry), H.E. Mohamed Arkab (Algerian Minister of Hydrocarbons and Mining). © Photo: Chris Piotrowicz
