Gas: Ongoing Discussions between Sonatrach and Engie on Long-Term Contracts

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The Sonatrach group and the French Engie are in discussions on medium and long-term contracts but do not concern about next winter, said Monday, August 29, the deputy general manager of the French group, Claire Waysand, quoted by the agency. Reuters.

“The ongoing discussions with Sonatrach are discussions that are on medium, long-term contracts. We are not talking about next winter,” said Claire Waysand, adding that Engie had sufficient gas volumes for next winter despite the drop in Russian gas deliveries.

The question of the increase in deliveries of Algerian gas to France was indeed raised during the visit of the French president to Algeria, according to Europe 1 and BFMTV, which specified that Algeria could well increase its deliveries of gas to France up to 50%.

It would be an oral commitment on the Algerian side, hence the absence of an official announcement, according to Europe 1, which specified that exchanges were to take place between the Algerian side and Engie, whose boss Catherine MacGregor was received by the Minister of Energy and Mines, Mohamed Arkab, in the presence of the CEO of Sonatrach, Toufik Hakkar.

“There are currently discussions between Engie and the Algerian government to increase gas and LNG deliveries. These discussions seem to be on the right track. The proportions have not yet been decided, +50% would be a credible target”, according to a source from the French executive interviewed by BFMTV.

“Announcements will be made soon,” said Olivier Véran, spokesperson for the French government, in this regard.

During his visit to Algeria, Emmanuel Macron denied that France had “gone to Canossa” to beg gas from Algeria. “France depends little on gas in its energy mix, about 20%, and in this whole, Algeria represents 8 to 9%, we are not in a dynamic where Algerian gas could change the situation”.