On November 3, 2026, Algerian energy company Sonatrach signed a protocol of understanding with the International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation (IFC), both part of the World Bank Group. The agreement aims to identify and develop cooperation opportunities to reduce gas flaring and methane emissions, as well as accelerate the energy transition through the development of green hydrogen and its derivatives. The signing ceremony took place in Algiers, Algeria.
The protocol also covers the petrochemical and fertilizer sectors, and foresees exploring collaboration opportunities that value Sonatrach's international expertise, particularly in Africa. The agreement focuses on technical assistance, sharing best practices, and evaluating financing options. Sonatrach will oversee the operational implementation of the protocol. The World Bank Group's vice-president for the Middle East, North Africa, Pakistan, and Afghanistan, Ousmane Dione, and Sonatrach's CEO, Nour Eddine Daoudi, were present at the signing ceremony.
According to Sonatrach's CEO, Nour Eddine Daoudi, the agreement lays the groundwork for cooperation in reducing gas flaring and methane emissions, accelerating the energy transition, and exploring new opportunities for valorizing Sonatrach's international expertise. Daoudi emphasized that the protocol's success requires the combined efforts and professionalism of all parties involved. The agreement marks the beginning of a cooperation process that aims to achieve common objectives.
World Bank Group's vice-president, Ousmane Dione, stated that the event represents an important milestone, crowning over a year of work and coordination between the teams of both parties. Dione praised Sonatrach's international experience, which enables the company to expand its activities and strengthen its presence on the African continent. The World Bank Group expressed its readiness to accompany and support concerned actors in addressing current challenges.
The protocol's signing took place on the sidelines of a workshop on climate finance and carbon markets held at the International Conference Center in Algiers. The event was attended by various stakeholders, including representatives from Sonatrach and the World Bank Group. The agreement is expected to foster cooperation and knowledge sharing between the parties.
The development of green hydrogen and its derivatives is a key aspect of the protocol. This aligns with Algeria's efforts to accelerate its energy transition and reduce its carbon footprint. Sonatrach's involvement in the petrochemical and fertilizer sectors is also expected to benefit from the cooperation.
The cooperation between Sonatrach and the World Bank Group institutions is expected to have a positive impact on Algeria's energy sector and the environment. The agreement's implementation will be closely monitored, with a focus on achieving tangible results in reducing gas flaring and methane emissions.
Key points
- Sonatrach signs protocol with World Bank institutions to reduce gas flaring and methane emissions.
- The agreement aims to accelerate Algeria's energy transition through the development of green hydrogen and its derivatives.
- The protocol covers the petrochemical and fertilizer sectors, and foresees exploring collaboration opportunities in Africa.
