(Ecofin Agency) - Algeria's Sonatrach and Turkey-based hydrocarbon transport company, Botas, have confirmed their willingness to strengthen co-operation and develop their positions in regional markets with the signing of an agreement.
The agreement which was signed on Tuesday by Sonatrach Chief Executive Officer (CEO) Amine Mazouzi and his counterpart from Botas, Burhan Ozcan, supports the exploration of partnership opportunities in fields of common interest in the hydrocarbon chain in Algeria, Turkey as well as other countries.
“Through this agreement, Sonatrach and Botas confirm their willingness to strengthen and develop their long-standing relations and extend their co-operation to new areas in the best interest of the two companies,” Amine Mazouzi told Algeria Press service during the signing of the agreement.
Algeria and Turkey have been involved for more than 25 years in a LNG contract signed in 1988, according to our source.
In 2014, both countries renewed their gas cooperation with a new 10-year LNG deal with Turkey agreeing to import 4.4 bcm of LNG a year from Algeria, an increase from 4 bcm of LNG imported under the previous arrangement.
Last October, Sonatrach said it was looking to capitalize on increasing natural gas demand from nations including Egypt and Jordan amidst efforts to boost its own production. Amongst other markets, Sonatrach is also looking to boost supply to Turkey, where it has a contract that expires in 2020.
“Turkey is one of the markets we want to supply with additional volumes of LNG,” Mazouzi added.