VNG H&V signs gas supply contract with Algerian state-owned energy company SONATRACH

Leipzig-based gas trader VNG Handel & Vertrieb GmbH (VNG H&V), a 100% subsidiary of VNG AG, and the Algerian state-owned energy company SONATRACH have reached an important milestone with the signing of a medium-term gas supply contract. The agreement was signed on February 8, 2024 in Algiers, Algeria, and underscores the close cooperation between the two companies.

Ulf Heitmüller, Chairman of the Board of Management of VNG AG, commented on the conclusion of the contract: "We are delighted that we have successfully concluded a gas supply contract with Sonatrach. VNG is thus the first German company to purchase pipeline gas from Algeria. The contract lays the foundation for a trusting supply relationship, opens up new perspectives and strengthens the German-Algerian energy partnership. In addition to natural gas from Algeria as an important raw material for the energy transition, the long-term goal is to establish a hydrogen partnership with Sonatrach and to import green hydrogen from Algeria to Germany in the future. The purchase and transit of Algerian pipeline gas to Germany is an additional diversification of our supply portfolio, underlines our position as a reliable partner for our customers and makes an important contribution to security of supply."

Rachid Hachichi, CEO of SONATRACH, said: "We are very pleased to strengthen our energy partnerships with Europe through the landmark agreement with VNG. It marks the beginning of natural gas deliveries to Germany. We see great potential to further expand this cooperation and expand it to other areas of the energy value chain, such as hydrogen, in the future."