French energy giant Total and Algerian Sonatrach signed an agreement to renew their partnership for trade in liquefied natural gas (LNG), Total announced in a statement on Thursday.
The agreement is a three-year extension to the existing supply contract to provide 2 million tons per year of Algerian LNG to the French market, primarily through the LNG terminal at Fos Cavaou in the Bouches-du-Rhone region of southern France.
The agreement also includes the sub-charter of an LNG tanker of Total by Sonatrach.
'This agreement is part of the long history of cooperation between Total and Sonatrach. Thanks to the quality of our relationship, we were able to conclude it in an extremely volatile market environment,' said Laurent Vivier, president gas of Total.
Total has been in the energy sector in Algeria for almost 70 years. The group is active in oil and gas exploration and production as well as in liquefied natural gas through supply contracts with Sonatrach. The group is also active in the marketing of lubricants and bitumen and launched engineering studies for a petrochemical project in western Algeria.
By Sibel Morrow