Sonatrach, Algeria’s largest state-owned energy company, is planning to use the Krk LNG terminal in Croatia as a major supply route to Europe. The terminal, located in OmiĊĦalj, will be part of Sonatrach’s strategy to deliver natural gas and electricity to European markets.
Sonatrach, which exported $77 billion worth of natural gas and oil last year, is exploring various expansion opportunities, including potential collaboration with Hungarian oil giant MOL. Rachid Hachichi, head of Sonatrach, suggested that Algeria could become Europe’s “battery” due to its significant solar energy potential. Plans include exporting solar electricity to Europe via submarine cables to Italy and Spain, although the necessary infrastructure is still under development.
Founded in 1963, Sonatrach is Africa’s largest company and was the seventh-largest gas company globally in 2021. That year, its export revenues surged by 75% to $35 billion. The company employs over 53,000 people directly and has more than 150,000 employees through its subsidiaries.
In response to the Russian invasion of Ukraine, Sonatrach has ramped up its activities in Europe, securing agreements to transport gas through Italy and exploring markets in India, Brazil, and North America. The company has established partnerships with major international firms such as Chevron, ExxonMobil, Bank Sinopac, and Eni.
LNG Hrvatska, the state-owned operator of the Krk terminal, has confirmed ongoing negotiations with Sonatrach regarding the terminal’s capacity and technical requirements for receiving LNG carriers. This year, two Algerian LNG carriers have already docked at the OmiĊĦalj terminal, underscoring the growing role of Sonatrach in Europe’s energy landscape.
