Sonatrach, Algeria's national energy company, signed a memorandum of understanding with Germany's VNG and Norway's AIC Finance on Tuesday. The agreement aims to reduce emissions and develop low-carbon solutions, promoting technology transfer and capacity building. The signing ceremony took place on the sidelines of a workshop on climate finance and carbon markets, organized by the Ministry of Energy and Sonatrach.
The agreement is part of Sonatrach's continued cooperation with its partners, which has led to previous memoranda of understanding with AIC Finance in October 2024 and VNG in June 2026. These agreements focused on supporting initiatives to reduce emissions and limit methane emissions throughout the gas value chain. The new memorandum aims to support the deployment of measurement, reporting, and verification systems to reduce methane emissions during operational activities.
The agreement aligns with Sonatrach's climate strategy, which aims to play a key role in Algeria's energy transition over the medium and long term. The company plans to develop and export new low-carbon energy solutions, creating a energy hub in Algeria that can provide necessary support for the energy transition. Sonatrach's CEO, Noor Eddine Dawoudi, emphasized that the agreement represents an important opportunity to strengthen international cooperation and partnership.
Dawoudi highlighted Sonatrach's ambitious goal of achieving zero gas flaring by 2030, as well as reducing methane emissions, as a key environmental priority. VNG's Chairman of the Board, Olaf Habtemuller, noted that the agreement marks a significant milestone in the partnership with Sonatrach, built on trust, reliability, and long-term commitment to cooperation. AIC Finance's CEO, Matthew Harwood, considered the agreement a culmination of two years of cooperation with Sonatrach.
The agreement supports the development of low-carbon solutions and the reduction of greenhouse gas emissions. It also promotes the transfer of technology and capacity building, as well as mobilizing climate finance through carbon credit mechanisms. The partnership aims to support Algeria's efforts to reduce its carbon footprint and contribute to global climate goals.
Sonatrach's climate strategy is aligned with Algeria's national priorities and international commitments. The company is committed to playing a key role in the country's energy transition, reducing emissions, and promoting sustainable development. The agreement with VNG and AIC Finance is expected to contribute to the achievement of these goals.
The signing of the memorandum of understanding is a significant step in Sonatrach's efforts to reduce emissions and develop low-carbon solutions. The company will work closely with its partners to implement the agreement and achieve its climate goals. The partnership is expected to have a positive impact on Algeria's energy sector and contribute to the country's sustainable development.
Key points
- Sonatrach signs agreement with Germany's VNG and Norway's AIC Finance to reduce emissions and develop low-carbon solutions.
