Published on 31 May 2024 on Zacks via Yahoo Finance

Chevron (CVX) Nears Deal With Sonatrach to Boost Gas Output

Chevron Corporation CVX, one of the largest U.S. energy giants, is close to finalizing a significant agreement with Algeria's state-owned energy company, Sonatrach. This deal, which is expected to be signed within days, represents a strategic push to boost Algeria's natural gas production capabilities. As announced by Algeria’s Energy Minister Mohamed Arkab in a recent interview with state television, reported by Bloomberg, this collaboration would highlight Algeria's commitment to enhancing its role as a crucial natural gas supplier to Europe.

Algeria's Push to Enhance Natural Gas Production

A Key Energy Provider to Europe: This partnership is part of a broader initiative by Algeria to ramp up natural gas production and exports, reinforcing its status as a key energy provider. Europe, which has been increasingly dependent on Africa’s gas to fill the void left by the reduced pipeline gas supply from Russia, stands to benefit significantly from this deal. The Chevron-Sonatrach agreement will play a key role in ensuring a stable and diversified gas supply.