VNG H&V signs gas supply contract with Algerian state-owned energy company SONATRACH
Leipzig-based gas trader VNG Handel & Vertrieb GmbH (VNG H&V), a wholly owned subsidiary of VNG AG, and the Algerian state-owned energy company SONATRACH have reached a significant milestone by signing a gas supply mid-term contract. The agreement was signed on the 8th February 2024 in Algiers, Algeria, and underlines the close cooperation between the two companies.
Ulf Heitmüller, CEO of VNG: "We are delighted to have successfully concluded a gas supply mid-term contract with Sonatrach. This makes VNG the first German company to purchase pipeline gas from Algeria. The contract lays the foundation for a trusting supply relationship, opens up new prospects and strengthens the German-Algerian energy partnership. Besides natural gas from Algeria as an important commodity for energy security, we aim for the long-term to establish a hydrogen partnership with Sonatrach and to import green hydrogen from Algeria to Germany in the future. The purchase and transit of Algerian pipeline gas to Germany is an additional diversification of our purchase portfolio, underpins our position as a reliable partner for our customers and makes an important contribution to security of supply.”
Mr Rachid Hachichi, CEO of SONATRACH: “We are very happy to strengthen our energy business partnerships with Europe through this landmark agreement with the company VNG, which marks the start of natural gas deliveries to Germany, with whom we see great potential to further develop this marketing cooperation and extend it in the future to other areas of the energy value chain, such as hydrogen.
VNG is a group of over 20 companies active in the European energy industry, employing about 1,700 people. As a gas importer and wholesaler as well as an operator of critical gas infrastructure, the Group, which is headquartered in Leipzig, is central to the secure supply of gas in Germany. With the “VNG 2030+” strategy, VNG is also pursuing an ambitious path for a market ramp-up of renewable and decarbonised gases such as biogas and hydrogen, paving the way for a sustainable, secure supply and, in the long term, climate-neutral energy system of the future.
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.
