National Oil Corporation (NOCK) and Algeria’s state-owned Sonatrach have reached a deal to work together across the petroleum value chain. The partnership will cover upstream exploration and production, LPG imports, storage, distribution, and trading.
The Memorandum of Understanding, concluded in Algiers, also includes staff training, knowledge transfer, and the development of strategic reserves.
NOCK described the agreement as a key step toward expanding Kenya’s oil and gas capacity, noting that Sonatrach’s expertise, infrastructure, and trading networks will support the country’s energy transformation.
The MoU builds on an earlier government-to-government pact between Kenya and Algeria, aimed at boosting cooperation in oil, gas, and energy.
Beyond exploration, the agreement highlights the potential for Kenya to access LPG and refined oil products, develop LPG distribution systems for households and vehicles, and explore opportunities in lubricants and petrochemicals.
Kenya is pursuing this partnership to strengthen fuel security, attract investment, and advance its position as a regional energy hub. In 2023, the country’s LPG imports rose by 8% to over 360,000 tonnes, while petroleum product imports cost $4.6 billion.
By tapping into Sonatrach’s supply chains and trading platforms, Kenya could secure more stable LPG imports, reduce exposure to global price volatility, and support reforms such as new exploration licences and an open tender system for LPG.
Sonatrach, Algeria’s largest energy company, accounts for the majority of the country’s exports and operates over 150 subsidiaries. Its involvement could channel investment into Kenya’s oil exploration, midstream infrastructure, and downstream distribution.
At the same time, Kenya is scaling up domestic LPG infrastructure. A new KES8 billion storage facility in Kilifi County has begun operations, receiving an initial shipment of 12,000 tonnes of LPG to boost supply capacity.
source: www.intellinews.com
African Energy Council