Algeria and Azerbaijan have strengthened their energy relationship with a strategic agreement that places green hydrogen development at the centre of future cooperation, while also expanding collaboration across oil, gas, petrochemicals and energy infrastructure.
Algerian President Abdelmadjid Tebboune has ratified a memorandum of understanding aimed at deepening bilateral ties in both conventional and emerging energy sectors. The agreement identifies hydrogen production and transport infrastructure as key areas of cooperation as the two countries seek to expand their presence in the evolving global energy market, apa reported.
Originally signed on November 29, 2022, the memorandum was formally approved through a presidential decree issued on May 12, 2026. It establishes a long-term framework for cooperation based on shared economic and energy interests.
Alongside green hydrogen initiatives, the agreement covers a broad range of hydrocarbons activities, including regulatory and legal cooperation, upstream oil and gas exploration and production projects both onshore and offshore, as well as petrochemical development.
The partnership also includes cooperation in energy transportation, distribution and the marketing of petroleum products, including naphtha and liquefied natural gas (LNG).
As part of the accord, Azerbaijan’s state-owned energy company SOCAR will provide long-term supplies of light Azerbaijani crude oil and other petroleum grades to Sonatrach Raffineria Italiana, further expanding commercial energy trade between the two countries.
In addition to hydrogen development, the agreement provides for collaboration in research, energy governance, infrastructure development and workforce training, supporting both countries’ efforts to strengthen their energy sectors.
The memorandum will remain in effect for an initial period of five years and will be automatically renewed unless either party chooses to withdraw.
The agreement reflects a growing trend among energy-producing nations to combine traditional oil and gas cooperation with investments in low-carbon technologies, particularly green hydrogen, which is increasingly viewed as a key component of future clean energy systems.
