By: OrePulse

Algeria's Ministry of Hydrocarbons, state energy company Sonatrach and the United Nations Development Programme signed a cooperation agreement on November 3 aimed at reducing methane emissions from Sonatrach's operations and assessing the potential for green hydrogen production in the country. Sonatrach is Algeria's state-owned oil and gas company, the country's largest energy producer and a major supplier of natural gas to European markets.

The agreement was signed on the sidelines of a workshop on climate finance and carbon markets, organized by the Ministry of Hydrocarbons and Sonatrach under the patronage of Algeria's prime minister. Those attending the signing included Miloud Medjled, Secretary General of the Ministry of Hydrocarbons, and Sonatrach Chairman and CEO Noureddine Daoudi, along with government officials and representatives of national institutions and international partners.

The project covers two areas of work. Under the first, UNDP and Sonatrach will carry out a techno-economic feasibility study on green hydrogen potential in Algeria, examining available technology options, the infrastructure that would be needed, and possible scenarios for gradually integrating hydrogen production into Sonatrach's operations.

The second strand focuses on methane emissions, under which a fixed leak-detection and continuous-monitoring system will be installed and operated in line with the Oil and Gas Methane Partnership 2.0 (OGMP 2.0) reporting standard. The system is intended to improve the accuracy of emissions data and allow earlier detection of leaks across Sonatrach's facilities.

UNDP, the United Nations' development agency, will implement the project directly, with Sonatrach named as the main technical beneficiary.

The agreement builds on earlier Algerian work on hydrogen and emissions. The country has previously developed a 50-megawatt green hydrogen pilot project at Arzew, on Algeria's northern coast. Algeria is also working with European partners on a separate initiative known as the Southern Hydrogen Corridor, intended to connect Algerian hydrogen production with European markets; officials said that project is not covered by the new agreement with UNDP.

No budget figure for the new UNDP-Sonatrach project was disclosed. The initiative reflects Sonatrach's efforts to tighten monitoring of methane leaks from its oil and gas operations while exploring hydrogen as a lower-carbon addition to its exports.