Algeria’s Sonatrach, Sonelgaz Explore Energy Cooperation in Addis Ababa

Rachid Hachichi, the CEO of the Algerian oil company Sonatrach Group, and Mourad Adjal, the CEO of the Algerian power and gas company Sonelgaz, engaged in discussions with Brook Taye, the CEO of Ethiopia Investment Holding (EIH), in Addis Ababa. This meeting took place during the official visit of Mohamed Arkab, the Minister of State for Energy, Mines, and Renewable Energies, to the Federal Democratic Republic of Ethiopia, as stated by the ministry on Tuesday.

The meeting, which included officials from the ministry and representatives from both national companies, centered on investment opportunities, cooperation, and partnerships between Algerian and Ethiopian firms, particularly in the energy, hydrocarbons, oil, gas, and fertilizer sectors.

Discussions underscored the capabilities of Sonatrach and Sonelgaz, highlighting Algeria’s expertise in hydrocarbon exploration, production, transportation, and processing, alongside its fertilizer production capacities.

During the meeting, representatives from Sonatrach and Sonelgaz reiterated Algeria’s commitment to supporting Ethiopia in developing its energy and hydrocarbons sectors, in accordance with the directives of President Abdelmadjid Tebboune and the outcomes of his recent visit to Ethiopia.

In this context, Hachichi affirmed Algeria’s readiness to assist Ethiopia through technical expertise and training aimed at enhancing their capabilities in research, exploration, exploitation, transportation of hydrocarbons, petrochemicals, and petroleum products, as well as in developing the fertilizer industry to satisfy domestic market demands.

Adjal expressed Sonelgaz’s willingness to support Ethiopia in electricity generation from various sources, both conventional and renewable, particularly photovoltaic solar energy. He mentioned the potential provision of gas turbines and mobile power plants for remote areas in Ethiopia, according to the statement.

He also emphasized the possibilities for transporting and distributing electricity by strengthening electrical networks and transformers, utilizing Algerian expertise and locally manufactured equipment.

Brook Taye conveyed Ethiopia’s interest in bolstering economic cooperation with Algeria and expanding opportunities for joint trade and investment within the framework of African regional integration. He highlighted Ethiopia’s eagerness to learn from Algerian experience in developing energy and mining projects, noting the desire for an exchange of knowledge and expertise in these strategic sectors.

Additionally, the Algerian delegation met with Esmlealem Mihiretu, the CEO of the Ethiopian Petroleum Supply Enterprise (EPSE), to discuss enhancing commercial cooperation between Sonatrach and Ethiopian companies in the marketing of crude oil and petroleum products.

Both parties examined the feasibility of exporting Algerian crude oil to the Ethiopian market, as well as supplying liquefied natural gas (LNG) and liquefied petroleum gas (LPG).

Mihiretu emphasized the importance of securing reliable crude oil supplies for Ethiopia, stating that the country seeks dependable partnerships to meet its increasing demand for petroleum products.

Hachichi emphasized that the Sonatrach group possesses proven experience and extensive expertise in hydrocarbon marketing, particularly in meeting the needs of African markets. He expressed Algeria’s readiness to explore the potential for supplying crude oil and petroleum products to Ethiopia through competitive contractual arrangements, which would enhance economic cooperation between the two countries and support African energy integration.

At the conclusion of the two meetings, both parties agreed to continue technical and commercial consultations to identify new opportunities for collaboration between Algerian and Ethiopian companies. They also committed to strengthening economic integration in the fields of energy, hydrocarbons, and renewable energies, reaffirming their dedication to developing a robust partnership beneficial to both nations.