ALGIERS, Algeria – Energy giant ExxonMobil has signed a preliminary deal with Algeria’s state-owned energy company Sonatrach to explore for natural gas in two southern Algerian basins – Ahnet and Gourara. This move comes as Europe scrambles to find alternative gas supplies following Russia’s invasion of Ukraine.
The agreement focuses on evaluating the potential of these basins for hydrocarbon development. While financial details and potential resource estimates remain undisclosed, a successful exploration phase could pave the way for a full-fledged production agreement.
Algeria, already a major natural gas producer, is aiming to further solidify its position. The North African nation boasts vast conventional gas reserves and is estimated to hold the world’s third-largest shale gas deposits, behind China and Argentina.
This deal aligns with Europe’s growing appetite for African gas. The continent seeks to replace Russian pipeline gas, its previous primary source, with significant volumes of liquefied natural gas (LNG) and pipeline gas imports from Africa.
Italian energy giant Eni has been particularly proactive in securing African gas supplies for Europe, accelerating projects to meet the continent’s demand in the absence of Russian gas. Additionally, the UK’s largest LNG import terminal recently signed a ten-year gas supply agreement with Sonatrach.
