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Sonatrach Teams Up With German and Norwegian Partners to Cut Emissions and Tap Carbon Finance

5 November 2026 · Algeria Now

Sonatrach Teams Up With German and Norwegian Partners to Cut Emissions and Tap Carbon Finance — Photo : reuters.com (adresse collée)

Sonatrach, Algeria's state energy group, has signed a memorandum of understanding with Germany's VNG and the Norwegian firm ACI Finance to reduce its greenhouse gas emissions and open the way to climate finance through carbon credits.

The document was signed in Algiers on Tuesday, on the opening day of a national workshop on climate finance and carbon markets organized by the Ministry of Hydrocarbons and Sonatrach, according to a company statement. Sonatrach chief executive Noureddine Daoudi, VNG board chairman Ulf Heitmüller and ACI Finance head Matthew Harwood signed it.

The agreement covers the transfer of know-how, training of Sonatrach teams and the deployment of low-carbon solutions. It also provides for measurement, reporting and verification systems, known as MRV, which are needed to prove emission cuts before they can earn carbon credits. Sonatrach says the memorandum fits its climate strategy, which aims to position Algeria as a hub for decarbonized energy. The company has set itself the goal of ending gas flaring at its sites by 2030 and of significantly reducing methane losses. No financial amounts or quantified emission targets were disclosed.

The memorandum builds on earlier steps. In October 2024, ACI Finance agreed to support Sonatrach's emission-reduction projects. In June 2026, Sonatrach and VNG signed an agreement aimed at limiting methane leaks along the gas chain. In July, a gas supply contract for Germany was signed with VNG in Berlin.

The agreement matters for Algeria's commercial standing. European buyers, which are asking Algeria for more gas this winter, increasingly expect suppliers to show that their gas is produced with low methane leakage. Lower emissions can protect market share and earn carbon credits.

The deal also supports the national climate pledge the Prime Minister set out at the workshop.

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