Algerian energy giant Sonatrach has signed a protocol agreement with German energy company VNG and Norwegian firm ACI Finance to reduce its greenhouse gas emissions. The agreement, signed on November 4, 2026, in Algiers, aims to transfer knowledge, enhance team skills, and deploy low-carbon solutions. The partnership was formalized during the inaugural national workshop on climate financing and carbon markets, co-organized by the Ministry of Hydrocarbons and Sonatrach.
The agreement builds upon two existing bilateral partnerships. In October 2024, ACI Finance partnered with Sonatrach to support emission reduction projects. In June 2026, Sonatrach and VNG signed an agreement specifically targeting methane leaks along the gas supply chain. The new tripartite agreement also complements a July 2026 contract between Sonatrach and VNG for natural gas supply to Germany, with increased volumes from January 1, 2027.
The partnership will enable Sonatrach to install Measurement, Notification, and Verification (MRV) systems, essential for accessing climate financing through carbon credits. This development is crucial for Sonatrach's goal of eliminating gas flaring by 2030. The company aims to significantly reduce methane losses and achieve a substantial decrease in greenhouse gas emissions.
Sonatrach's President-Director General, Noureddine Daoudi, emphasized the company's commitment to reducing emissions. He highlighted the importance of partnering with experienced companies to achieve this goal. VNG's Chairman, Ulf Heitmüller, and ACI Finance's CEO, Matthew Harwood, expressed their confidence in the partnership, citing the robustness of their relationships with Sonatrach.
The agreement marks a significant step towards sustainable industrial cooperation between Sonatrach, VNG, and ACI Finance. The three companies will work together to deploy low-carbon solutions and reduce emissions. This partnership is expected to contribute to Algeria's efforts to mitigate climate change and reduce its carbon footprint.
The national workshop on climate financing and carbon markets, co-organized by the Ministry of Hydrocarbons and Sonatrach, brought together experts and stakeholders to discuss climate financing and carbon market opportunities. The workshop provided a platform for Sonatrach to showcase its commitment to reducing emissions and promoting sustainable practices.
The alliance between Sonatrach, VNG, and ACI Finance demonstrates the growing importance of international cooperation in addressing climate change. The partnership is expected to have a positive impact on the environment and contribute to a more sustainable future for Algeria and the global community.
Key points
- Sonatrach partners with VNG and ACI Finance to reduce greenhouse gas emissions and deploy low-carbon solutions.
- The agreement aims to help Sonatrach achieve its goal of eliminating gas flaring by 2030.
- The partnership marks a significant step towards sustainable industrial cooperation between the three companies.
