Germany to receive gas from Algeria via pipeline for the first time

Germany will receive its first supplies of pipeline natural gas from Algeria under a medium-term contract signed between a subsidiary of trader VNG AG and state-owned oil and gas firm Sonatrach, the companies said on February 8.

"We are happy to strengthen our energy business partnerships with Europe through this landmark agreement with the company VNG," Sonatrach CEO Rachid Hachichi said in a statement, Reuters reports.

This makes VNG the first German company to purchase pipeline gas from Algeria, the statement cited VNG's CEO as saying.

The agreement is with Leipzig-based VNG Handel & Vertrieb GmbH (VNG), a wholly owned subsidiary of VNG AG.

The statement said did not give details of the duration or the value of the contract.

Germany has been forced to seek new suppliers after Russia's invasion of Ukraine in February 2022 ended Germany's decades of reliance on Russian gas.

Algeria's gas production at 106 billion cubic meters per year, according to figures released by Sonatrach.