Wintershall Dea continues to expand its presence in Algeria. On May 4, the company entered into a sale and purchase agreement to acquire Edison's 11.25% interest in the Reggane Nord natural gas project. Following the completion of the transaction, the consortium Groupement Reggane Nord (GRN), operator of the project, will be composed of Sonatrach (40%), Wintershall Dea (30.75%) and Repsol (29.25%).
Algeria has significant energy potential. The country is the third largest exporter of gas to Europe, after Russia and Norway, and is the largest producer of natural gas in Africa. Algeria is a prime candidate for a strengthened energy partnership with Europe, especially at this critical time. Located just across the Mediterranean, the country has well-developed infrastructure linking it to Europe. This includes two subsea pipelines and LNG facilities at two sites. In the long term, the country has significant potential for hydrogen, solar and wind energy, and climate-friendly carbon capture and storage.
On this basis, Wintershall Dea is looking to expand in Algeria. Dawn Summers, COO and responsible board member for the Middle East and North Africa, says: "Algeria has great potential for natural gas production and future energy projects. This is why we want to increase our presence in Algeria and contribute to the development of its energy sector. The increase of our interest in the Reggane North project is a first step.
Thomas Ruttmann, senior vice president and general manager for Algeria, added: "Wintershall Dea has always been an active partner in the Reggane North project, and we are pleased to strengthen our role. The project has been reliably producing low-cost natural gas since 2017 and has a long future in securing energy supply for Algeria and the region.
The transaction is subject to, among other things, the usual regulatory approvals.
It comes after Wintershall Dea and Sonatrach recently extended a memorandum of understanding to consider new business opportunities in gas production and low-carbon energy solutions. Wintershall Dea entered the Algerian market in 2002 and subsequently became a partner in the Reggane Nord project. This project comprises six gas fields over an area of 1,800 km2 in the southwest of the country. The operator GRN marked first gas in 2017 and the project is expected to be in production until at least 2041.