UN Partnership to Strengthen Sonatrach’s Capacity to Cut Methane Emissions

Algeria and the United Nations Development Programme (UNDP) on Tuesday signed a cooperation project agreement aimed at strengthening the capacity of state-owned energy giant Sonatrach to measure, report and verify methane emissions, while assessing the technical and economic feasibility of green hydrogen development. The initiative forms part of broader efforts to reduce the carbon footprint of Algeria’s energy industry and support the country’s energy transition. The agreement was signed on the sidelines of a national workshop on climate finance and carbon markets, organised by the Ministry of Hydrocarbons and Sonatrach under the high patronage of the Prime Minister, Sifi Ghrieb. The ceremony was attended by Miloud Medjelled, Secretary-General of the Ministry of Hydrocarbons; Noureddine Daoudi, Sonatrach’s Chief Executive Officer; Amine Remini, head of the Hydrocarbons Regulatory Authority; and Abdelkader Cherfaoui, head of the National Agency for the Valorisation of Hydrocarbon Resources. Representatives of relevant government departments and institutions, international partners, and the Ambassador of the United Kingdom of Great Britain and Northern Ireland to Algeria, James Downer, were also present. Entitled “Strengthening the Measurement, Reporting and Verification System to Reduce Methane Emissions and Assess the Feasibility of Green Hydrogen Potential to Support Sonatrach’s Energy Transition,” the project agreement was signed by representatives of the Ministry of Hydrocarbons, the Ministry of Energy and Renewable Energies, the Ministry of Foreign Affairs, National Community Abroad and African Affairs, and the UNDP in Algeria, reflecting the cross-sectoral nature of the partnership. The project is built around two main components The first focuses on enhancing Sonatrach’s capacity to measure, report and verify methane emissions through the installation and commissioning of a fixed system for detecting and continuously monitoring fugitive emissions. The system will operate in accordance with international standards and best practices, including the Oil and Gas Methane Partnership 2.0 (OGMP 2.0) framework. The system is expected to strengthen monitoring capabilities and enable the early detection of methane leaks, while generating accurate and reliable emissions data. This will help inform targeted mitigation measures, improve transparency regarding the group’s environmental performance and strengthen compliance with international requirements. The second component involves an in-depth technical and economic feasibility study of green hydrogen potential. The study will assess available technological options, identify infrastructure requirements and examine possible scenarios for gradually integrating green hydrogen into Sonatrach’s value chain and industrial operations. The objective is to diversify energy solutions and explore new opportunities in the low-carbon energy sector. The UNDP will directly oversee the project’s implementation in coordination with Sonatrach, the initiative’s primary technical beneficiary. It will provide the necessary technical expertise and support to deliver the project’s various components, while promoting technology transfer and developing national expertise in emissions monitoring and the assessment of low-carbon energy solutions. The agreement comes amid Algeria’s broader efforts to strengthen the environmental sustainability of its energy industry, curb greenhouse gas emissions and adapt to the transformations reshaping international energy markets as the global transition towards cleaner energy gathers pace. Beyond its immediate objectives, the partnership reflects Algeria’s ambition to reconcile its position as a major hydrocarbon producer with the growing demands of the global energy transition. By addressing methane emissions while exploring the potential of green hydrogen, Sonatrach is seeking to strengthen the environmental sustainability of its operations, enhance its international competitiveness and prepare for the evolving requirements of global energy markets.