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Analysis

Germany to import Algerian gas, eyes long-term renewables partnership

Berlin needs to convince Algiers that green hydrogen production for export is technically feasible and economically viable.

FABIAN BIMMER/AFP via Getty Images
The Floating Storage Regasification Unit ship Hoegh Esperanza is guided by tugboats at the port of Wilhelmshaven, Germany, Dec. 15, 2022. — FABIAN BIMMER/AFP via Getty Images

Germany’s recent energy agreements with Algeria, including pledging to buy its pipeline natural gas for the first time, are part of a broader strategy by Berlin to coax Algiers into a larger future commitment to renewable energy, according to one expert who spoke to Al-Monitor. 

On Feb. 8, Algeria and Germany signed a contract tying state-owned gas producer Sonatrach to Leipzig-based gas trader VNG Handel & Vertrieb GmbH, a subsidiary of the VNG AG group, marking the first time the European country has procured gas from the North African nation. 

The pipeline agreement was signed during a visit by a German delegation to Algiers led by Economy Minister Robert Habeck. No more details were given about the agreement.

Also on that visit, Algeria and Germany agreed to form a task force to increase green hydrogen development as European countries scramble for sustainable energy to power their green transition. 

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