Algerian state energy firm Sonatrach has renewed its gas export deal with France’s Engie, Reuters reported.
The contract is medium to long term. However, no further details on the quantity of gas to be delivered to Engie were mentioned.
The announcement came a few days after Kamel Eddine Chikhi was appointed as Soantrach’s new chief executive.
Sonatrach has already renewed gas export contracts this year with Enel, Galp Energia, Eni, Botas, Naturgy, and Edison. The Algerian firm’s total gas exports in 2018 were 51.4 billion cubic meters, with Italy and Spain accounting for two-thirds of the volume.
“We will work to renew our oil and gas reserves that have been declining in the past decade,” Chikhi said after his appointment.
Engie’s deal was previously questioned on whether it will be renewed or not, as the country’s domestic demand and stagnant output have made it hard for Sonatrach to maintain Algerian export levels.
Energy sales is the basis of Algeria’s foreign currency, although it has been decreasing since oil prices dropped in 2014.