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Leading African Energy Company Enters Croatia with the Involvement of MOL
The Krk LNG terminal would be one of the supply routes to Europe for Sonatrach, the largest African energy company, based in Algeria. It is planned to supply European countries with natural gas and electricity. The company exported USD 77 billion wor
The Krk LNG terminal would be one of the supply routes to Europe for Sonatrach, the largest African energy company, based in Algeria. It is planned to supply European countries with natural gas and electricity. The company exported USD 77 billion worth of natural gas and oil last year. Hungarian oil giant MOL could be also involved in the Algerian company’s market expansion.
“Algeria could be Europe’s battery,” said Rachid Hachichi, head of Sonatrach, according to Croatia’s Jutarnji List. He added: “Algeria has huge potential for solar energy and
electricity exports to Europe would be via submarine cables to Italy and Spain, although the grid has not yet been built.”
The European LNG terminal would be in Omišalj, Croatia.
Fact
Sonatrach is Algeria’s national state-owned oil company. Founded in 1963, it is now known as Africa’s largest company, with 154 subsidiaries, and is often referred to as the first African oil ‘major’. Sonatrach was the seventh largest gas company in the world in 2021. In the same year, the company’s export revenues increased by 75% to USD 35 billion, up from USD 20 billion the previous year. Sonatrach employs over 53,000 people and more than 150,000 employees in its subsidiaries.Since the Russian invasion of Ukraine, Sonatrach has been increasingly active in the region, with agreements in place with Slovenia, among others, to transport gas via Italy. The Algerian company also has big plans in India, Brazil and the North American market. It has links with major companies such as Chevron Corporation, ExxonMobil, Bank Sinopac Company Limited and Eni.
LNG Hrvatska, the state-owned company that operates the Krk terminal, confirmed to the Croatian newspaper that negotiations had been held with Sonatrach on the technical conditions that the terminal would provide to receive gas carriers. They also confirmed that two Algerian LNG carriers have docked at the Omišalj terminal this year.
Although Hungarian MOL is not formally a tenant of the terminal capacity in Krk, the oil giant has been able to import gas from Algeria through MET and MVM, the largest tenants of the terminal until 2037,
writes Jutarnji list.
In addition, through MVM, Hungary has historical connections to the Krk LNG Terminal. In 2020, MVM Group member Hungarian Gas Trade Ltd. (MFGK) signed a package of agreements in the framework of which MFGK’s Croatian subsidiary (MFGK Croatia d.o.o.) supplies up to 1 billion cubic meters of LNG per year from January 1, 2021 for the period of nearly 7 years. The capacity booking and the associated LNG purchase is of significant importance as it is the first time that natural gas from a dedicated LNG source is being supplied to Hungary.
Via Világgazdaság, Jutarnji List; Featured image via Wikipedia
The post Leading African Energy Company Enters Croatia with the Involvement of MOL appeared first on Hungary Today.
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