LNG

May 29 (LNG) – Long-standing LNG exporter Algeria has held talks with one of the newest LNG nations Mozambique on future cooperation. Mozambique’s Minister of Economy and Finance, Ernesto Max Tonela, met in Algiers with Algerian Energy Minister Mohamed Arkab and both countries have agreed to cooperate on natural gas exploration and production issues and on LNG markets.

   “Algeria offered to share its experience in terms of the natural gas sector in addition to the development of gas fields and the production and transportation of LNG,” said Arkab. “Algeria also wishes to provide support to Mozambique from state energy company Sonatrach through training in the hydrocarbon professions as well as the transfer of Sonatrach’s know-how in international energy trading markets,” the Algerian minister added.

Sonatrach, the Algerian national energy company, has signed a supply contract for pipeline natural gas to be delivered to Germany via pipelines to southern European as the Germans now appear to be less enthusiastic about replacing Russian gas with LNG imports from the US and Qatar.

The pipeline gas agreement was signed during a visit to Algiers by German ministers and is with Leipzig-based VNG Handel & Vertrieb GmbH, a wholly owned subsidiary of VNG AG.

The VNG group is involved in energy trading and sales as well as natural gas and energy transportation by pipeline and gas storage. 

No details were released on the length of the supply contract nor on the volumes of natural gas Algeria would be delivering to Germany from its output of more than 100 billion cubic metres per annum.

Sonatrach, the national oil and gas company with two LNG export plants at Arzew and Skikda on the Mediterranean Coast as well as gas pipelines connected to Spain and Italy, said the deal was signed at a ceremony chaired by Algeria’s Minister of Energy and Mines Mohamed Arkab.

Green-backed gas deal

The signing of the VNG natural gas deal was also witnessed by the visiting German Vice-Chancellor and Federal Minister of Economic Affairs and Climate Action, Robert Habeck, who is a member of the left-wing Green Party in the three-party German coalition government.

Rachid Hachichi, the Chief Executive of Sonatrach and his VNG counterpart Ulf Heitmüller spoke at the signing ceremony.

“I must express my satisfaction with the strengthening of the energy partnership with Europe through this historic contract with the company VNG, which will lead to the start of natural gas deliveries to Germany,” stated Hachichi.

Ulf Heitmüller, the CEO of VNG, said he was delighted to have been able to conclude a medium-term gas supply contract with Sonatrach.

“VNG thus becomes the first German company to purchase gas via pipeline from Algeria,” Heitmüller added.

Energy partnership

“This contract lays the foundations for a relationship of trust in terms of supply, opens new perspectives and strengthens the German-Algerian energy partnership,” stated the VNG CEO.

VNG’s Heitmüller added that Algerian natural gas would now be “an essential part” of guaranteed energy security for Germany,

“The purchase of Algerian gas via pipeline to Germany constitutes an additional diversification of VNG's purchasing portfolio, thus strengthening its position as a reliable partner towards its customers and making the company an important contributor to security of supplies,” Heitmüller declared.

Europe’s largest liquefied natural gas import terminal, the UK’s Isle of Grain facility on the Medway River in Kent, has extended its capacity agreement with the Algerian national energy company Sonatrach.

Grain LNG, owned by a subsidiary of National Grid Plc, said a 10-year agreement was signed to extend the long-term storage and redelivery capacity of Sonatrach at the UK terminal from January 2029.

This is the first agreement signed for around 3 million tonnes per annum of capacity from Grain LNG’s competitive auction process which was launched in September 2023.

“The successful outcome of the auction further secures the future of Europe’s largest terminal into the next decade,” said the company.

The Grain LNG terminal, sited about 43 miles (69 kilometres) southeast of London, is currently expanding to store and deliver enough gas to meet up to 33 percent of UK gas demand.

Security

“This helps ensure the UK’s energy security as LNG imports play a critical role in making sure the UK has the gas it needs, when it needs it and providing a flexible and reliable supply to heat peoples’ homes and to complement the growth of renewable generation,” said Katie Jackson, President of National Grid Ventures, owner of the terminal.

“This agreement ensures that Grain will continue to have a diverse supplier base within the Atlantic Basin,” added Jackson.

“I am delighted that Sonatrach have once again shown a long-term commitment to our world-class site which UK consumers rely on, and I look forward to continuing our working relationship with them in the coming years,” she stated.

Mayouf Belgacem, Executive Vice President of Sonatrach, said LNG would continue to play a critical role in worldwide energy supply.

Algeria, the longest-standing global exporter of LNG supplies to Europe, operates two liquefaction and export plants at Skikda and Arzew on the Mediterranean Coast.

“We have expressed our willingness to strengthen our position as a long-term partner of Grain LNG and as a substantial contributor to UK gas security of supply,” Belgacem explained.

Guaranteed access

“Besides, this agreement offers Sonatrach guaranteed access to Europe’s largest terminal which helps line up Sonatrach’s long-term marketing strategy by diversifying its markets,” said the Sonatrach executive .

The Isle of Grain terminal had launched its auction for 9 MTPA of existing capacity and Sonatrach has now been a leading beneficiary.

There is also an expansion project underway at the UK facility that will see LNG storage at the terminal increase in 2025 to around 1.2 million cubic metres.

In the past 12 months the UK terminal has unloaded almost 120 carriers originating from multiple countries.

In addition to Algerian volumes, the terminal has received cargoes from the US, Qatar, Angola, Nigeria, Norway, Peru and Trinidad and Tobago.

Grain LNG, as part of the National Grid Ventures subsidiary, operates outside of National Grid’s core regulated businesses in the UK.

National Grid Ventures has a diverse portfolio including subsea electricity interconnectors, competitive transmission, wind and solar generation, battery storage as well as the Grain LNG storage and regasification infrastructure.

Algeria is preparing for more pipeline natural gas deliveries to the European Union as well as more LNG exports as new gas fields are developed amid more discoveries in the prolific gas basins of the North African nation.

The Algerian state oil and gas company Sonatrach has just appointed a new Chief Executive in Rachid Hachichi and he has just held talks with Claudio Descalzi, the CEO of Italian major Eni, the company with the most widespread interests in Algeria.

The talks between Descalzi and Hachichi in Algiers on October 12 were also attended by the Algerian Minister of Energy and Mines Mohamed Arkab.

“Eni and Sonatrach shared the joint programs for the development of Eni’s operated gas production as well as gas and LNG exports to Europe,” said Eni.

Descalzi also updated Minister Arkab on the progress of the accord signed by Eni and Sonatrach in January 2022 on upstream decarbonization, includingdetection of fugitive gas emissions in pipelines and plants and the identification of flaring-down opportunities in Sonatrach’s fields.

Eni currently has equity production of about 130,000 barrels of oil equivalent per day and is the key international energy company in terms of Algerian oil and gas operations.

Ten discoveries

Sonatrach also revealed that Algeria had made 10 new hydrocarbon discoveries in the nine months to the end of September 2023, adding to the 16 other discoveries made in 2022.

Arkab met the Eni CEO after also attending the 25th ministerial meeting of the Gas Exporting Countries Forum (GECF) held on October 10 in Malabo, the capital of  Equatorial Guinea, an LNG producer and exporter from its Punta Europa plant on Bioko Island.

The GECF ministers issued a statement declaring that it was “ill advised” to call for any halt in natural gas investments.

“Halting gas investment would curb supplies, lead to an excessive rise in prices and a potential return to coal, as happened in 2022, undermining emissions reduction targets,” said the GECF final communiqué.

Arkab noted that participants at the Malabo meeting highlighted the need for “unrestricted investment” while “strengthening transcontinental financial cooperation in this matter”.

The GECF also advocated more “equitable access” to all technologies related to the exploration, extraction and exploitation of natural gas.

April 13 (LNGJ) - Two LNG cargoes are headed for the UK next week. The 216,000 cubic metres capacity Qatari Q-Flex carrier “Al Gashamiya” is scheduled to deliver a cargo on April 16 to the South Hook import terminal at the Port of Milford Haven.

   Another shipment is due to arrive on April 19 onboard the “GasLog Seattle” with 155,000 cubic metres of capacity. The vessel will discharge an Algerian cargo at the Dragon terminal at the Welsh port. The shipment was lifted on April 5 from the Arzew plant in Algeria.

The second foreign trip of the premiership of Italian Prime Minister Giorgia Meloni has taken place to Libya and has resulted in a major natural gas deal with the Libyans who were former LNG exporters from a plant destroyed during years of conflict.

Sonatrach, the Algerian national energy company, plans to invest more than $30 billion in the exploration and production of hydrocarbons, notably natural gas, and to upgrade facilities to improve its position in global markets for LNG as well as pipeline gas for Europe.

Eni, the Italian energy major and significant liquefied natural gas developer and market participant, has started production from two natural gas fields within the new Berkine South contract in Algeria.

The European Union’s Commissioner for Energy Kadri Simson is in Algeria for two days of talks on strengthening the EU’s energy cooperation with the Algerians after the failure of an EU summit last week to agree a natural gas price cap that would have affected LNG trading.

Sept 27 (LNGJ) - The 155,000 cubic metres capacity carrier “GasLog Seattle” was discharging a cargo from Algeria on September 27 at the UK Isle of Grain import terminal located southeast of London on the Medway River estuary, according to the port authorities. The shipment was lifted on August 18 from the Arzew liquefaction plant on the North African nation’s Mediterranean coast.

   The UK is then scheduled to receive its first October cargo from the US. The 162,000 cubic metres capacity vessel “Golar Glacier” will arrive at the UK South Hook terminal at Milford Haven on October 3 with a US shipment lifted on September 1 from the Cameron LNG export plant in Louisiana.