Türkiye has extended its liquefied natural gas (LNG) supply deal with Algeria for three years, as the two countries agreed to boost trade to $10 billion.
The Turkish Energy Minister, Alparslan Bayraktar, said the current contract has been extended until 2027. It was scheduled to expire in October 2024.
In a statement on X, Bayraktar said that the deal was signed on Tuesday at the second meeting of the High-Level Cooperation Council between Türkiye and Algeria.
Turkish President Recep Tayyip Erdogan and his Algerian counterpart Abdelmadjid Tebboune were present.
The original gas supply agreement between Botas and Sonatrach was signed in 1988 and has since been renewed.
Türkiye will continue to buy 4.4 billion cubic meters (bcm) of LNG from Algeria annually, Bayraktar added.
Around 1,400 companies with Turkish partners operating in Algeria provide employment to approximately 5,000 Algerians, Erdogan said at the Algeria-Türkiye Business Forum.
"The market value of our companies' investments has approached $6 billion. With these figures, Türkiye is the country that makes the most investments and provides the most employment in Algeria, excluding oil and natural gas," Erdogan said.
During Erdogan’s visit to Algeria, the two countries signed 12 agreements in various fields.
Both sides projected an increase in bilateral trade to $6 billion by the end of the current year, stressing that they target trade worth $10 billion in the mid-term.
Turkish official figures showed that trade increased by 30% last year.
LNG and crude oil represent 90% of the oil products that Algeria exports to Türkiye.
Erdogan further commended the Algerian efforts to enhance domestic output and its capabilities in the non-hydrocarbon sectors.
"With the efforts we will increase, we hope to reach the target of $10 billion in trade volume that we set with my brother Tebboune in a short time," he said.
The Turkish president underlined that Ankara would continue to provide the necessary facilities for Algerians to increase their investments in Türkiye.
Addressing the Algeria-Türkiye Business Forum, Algerian Prime Minister Nadir Larbaoui said that his country looks forward to achieving many gains through the enhancement of the business climate, the contribution of Turkish investors to build a fruitful economic partnership with their Algerian counterparts, the embodiment of a diversification-based economy, mutual interests, and the win-win cooperation.
Larbaoui added that both countries’ economies offer opportunities that could help realize the target of $10 billion in trade in the medium term.
