Meed | Engie in talks with Algeria over gas purchases

Engie in talks with Algeria over gas purchases

23 October 2023

French utility company Engie is engaged in ongoing discussions with Algeria over future gas purchases, the company’s chief executive, Catherine MacGregor, has told MEED in an interview.

The discussions follow a deal announced in July last year that saw the two parties agree to define the contractual selling price applicable over three years, up to 2024.

Engie is one of many European companies that has sought to make new deals with North African gas providers in the wake of gas supply disruption arising from Russia’s war in Ukraine.

Algeria has seen a significant upsurge in interest in gas sales due to European efforts to diversify away from Russian gas imports.

However, the North African nation has struggled to take advantage of the increased demand due to the poor maintenance of its oil and gas infrastructure and years of underinvestment.

Earlier this month, Toufik Hakkar, CEO of the state-owned oil and gas company Sonatrach, was asked to step down, further increasing the uncertainty about the future of Algeria’s oil and gas sector.

He was replaced by Rachid Hachichi, who previously led the Algerian oil and gas company between April and November 2019.

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Wil Crisp