Algeria’s national oil and gas company SONATRACH has signed a Memorandum of Understanding (MoU) with two World Bank Group institutions to strengthen cooperation on emissions reduction, clean energy development and investment opportunities in the energy sector.

 

The agreement, signed with the International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation (IFC), sets the stage for collaboration on reducing gas flaring and methane emissions while accelerating the energy transition through the development of green hydrogen and its derivatives.

 

The partnership will also explore opportunities in the petrochemicals and fertilizers sectors, alongside initiatives to strengthen SONATRACH’s international expertise, particularly in Africa.

 

The signing ceremony took place on the sidelines of a workshop on climate finance and carbon markets, held on November 3 and 4, 2026, at the International Conference Center in Algiers.

 

Under the agreement, the three parties will focus on technical assistance, the exchange of best practices, techno-economic studies, assessment of financing options and skills development.

 

SONATRACH, as the beneficiary of the initiative, will oversee its operational implementation.

 

The agreement marks a step towards expanding cooperation between SONATRACH and the World Bank Group institutions, with a focus on emissions reduction, emerging clean energy technologies and opportunities for sustainable growth across the energy value chain.