Algeria to Boost Gas Exports to Germany from January 2027

Algeria's state-owned energy company, Sonatrach, has signed an agreement with German energy group VNG to increase its gas deliveries from January 1, 2027. The deal was signed on July 16, 2026, in Berlin, during Algerian President Abdelmadjid Tebboune's official visit to Germany. The agreement aims to strengthen energy cooperation between the two countries and support Germany's efforts to diversify its energy supplies.

The agreement is part of Germany's strategy to secure its gas imports and reduce its dependence on a single supplier. VNG, based in Leipzig, has been importing gas from Sonatrach since 2024 and will increase its imports under the new agreement. However, the companies did not disclose the exact volumes, prices, or duration of the new commercial commitment. The increase in gas deliveries is expected to enhance energy security for Germany and the European Union.

The partnership between Sonatrach and VNG goes beyond gas supplies, with the two companies signing a memorandum of understanding on June 17, 2026, to cooperate in several energy areas. The agreement covers the development of projects related to green hydrogen, ammonia, and methane emission reduction. Both companies are also part of the Algeria to Europe Hydrogen Alliance (ALTEH2A) and SoutH2 Corridor initiatives, which aim to develop infrastructure for transporting hydrogen between Algeria and Europe.

The increase in gas deliveries from Sonatrach to VNG is seen as a significant step in strengthening energy relations between Algeria and Germany. The agreement was signed in the presence of Algerian Minister of Hydrocarbons Mohamed Arkab and German State Secretary for Economy and Energy Frank Wetzel. Wetzel described Algeria as a reliable partner for Germany's energy security.

Germany is seeking to diversify its energy suppliers and reduce its dependence on a single source. The country's efforts to secure gas imports are part of a broader strategy to ensure energy security and reduce the risks associated with its current energy mix. The agreement with Sonatrach is expected to contribute to these efforts and support Germany's transition to a more sustainable energy future.

The cooperation between Sonatrach and VNG is also seen as a positive development for the European Union, which is seeking to reduce its dependence on imported energy sources. The agreement could pave the way for further cooperation between Algeria and Germany in the field of renewable energy and support the development of new energy projects.

The increase in gas deliveries from Algeria to Germany is expected to have a positive impact on the energy market in Europe. The agreement between Sonatrach and VNG is a significant development in the region's energy landscape and is seen as a positive step towards ensuring energy security for Germany and the European Union.

Key points

• Sonatrach to increase gas deliveries to VNG from January 1, 2027, under a new agreement.
• The agreement aims to support Germany's efforts to diversify its energy supplies and reduce its dependence on a single supplier.
• The partnership between Sonatrach and VNG goes beyond gas supplies, with cooperation in areas such as green hydrogen and ammonia.