Sonatrach becomes key gas and green hydrogen supplier for Germany's VNG
via Alg茅rie3603 min read
Germany's VNG, a major gas distributor, faced an existential crisis in 2022 due to the abrupt suspension of Russian gas deliveries. This led to a strategic shift, positioning Algeria's Sonatrach as a crucial partner. Since late 2024, Algerian gas has officially supplied the German market via the Transmed pipeline, and both companies are now collaborating on green hydrogen projects. VNG's CEO, Ulf Heitm眉ller, stated that the company diversified its gas sources, with Norway and Algeria becoming primary suppliers, alongside LNG from the United States. Algeria's position among VNG's main pipeline suppliers is now established, and the country also became the leading gas supplier to Spain and Italy in 2025, solidifying its role as a European gas pillar. Beyond hydrocarbons, Sonatrach and VNG are jointly developing industrial green hydrogen production projects in Algeria for export to Europe. The SoutH2 Corridor project aims to transport up to 1.2 million tons of renewable hydrogen from Algeria to Italy, Austria, and Germany, partially reusing existing gas pipelines to reduce infrastructure costs. This euro-Mediterranean green hydrogen project involves coordination meetings between Algeria, Tunisia, Italy, Austria, and Germany. VNG plans to invest five billion euros by 2035, primarily in hydrogen and biogas infrastructure, with a significant portion remaining in Eastern Germany. This strategic shift aligns with increasing involvement from leading German industrial groups like Siemen
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