World Bank, Sonatrach MoU Targets Gas Flaring, Clean Energy

Sonatrach Group, alongside the International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation (IFC), both members of the World Bank Group, formally signed a memorandum of understanding on Tuesday in Algiers. The agreement aims to identify and develop joint opportunities for cooperation and partnership. This includes efforts to reduce gas flaring and methane emissions, as well as advancing the development of green hydrogen and its derivatives, marking a step towards Algeria's energy transition. The signing ceremony took place at the International Conference Center "Abdellatif Rahal" during a workshop focused on climate finance and carbon markets.

The protocol of understanding outlines a framework for collaboration across several strategic areas. Beyond gas flaring and methane emission reduction, it encompasses the acceleration of the energy transition through green hydrogen development. The scope of cooperation also extends to the petrochemical and fertilizers sectors. A key component of this partnership involves exploring opportunities to leverage Sonatrach's international expertise, particularly within the African continent. This collaboration will be supported by technical assistance, the sharing of best practices including techno-economic studies, evaluation of financing options, and the strengthening of competencies.

Nour Eddine Daoudi, CEO of Sonatrach Group, affirmed that the agreement establishes a shared cooperation founded on four strategic axes: reducing gas flaring, diminishing methane emissions, accelerating the energy transition through green hydrogen development, and exploring new avenues to utilize Sonatrach’s international expertise, especially in Africa. He emphasized that this memorandum represents the initiation of a collaborative process requiring concerted efforts and professionalism. Ousmane Dione, World Bank Vice President for the Middle East, North Africa, Pakistan, and Afghanistan region, described the signing as an "important stage" that concludes over a year of coordination. He commended Sonatrach's international experience, which he noted positions the group to expand its activities and strengthen its presence in Africa, adding that the World Bank Group is prepared to support these objectives.