Sonatrach Extends LNG Supply Deal with Total
Algeria's national oil company Sonatrach has agreed with France's Total to extend a contract to supply 2mn mt/yr of LNG to the French market for another three years, the two said June 25.
Deliveries will be made "primarily" to the Fos Cavaou LNG import terminal near Marseilles, southern France, operated by Elengy. Total said the agreement also includes Sonatrach's sub-charter of one of its LNG tankers.
"This agreement is part of the long history of co-operation between Total and Sonatrach. Thanks to the quality of our relationship we were able to conclude it in an extremely volatile market environment. This new contract further enhances the flexibility of Total's LNG portfolio and strengthens our position as a major partner of Sonatrach,” Total said.
However the co-operation has limits: Algeria blocked Total's acquisition of Anadarko's assets in that country as part of the Occidental Petroleum-Anadarko deal.
Earlier this month the Algerian firm also extended its supply deal with Tunisia for another eight years until 2027, while also increasing volumes.