Gas Natural Fenosa and the Algerian company Sonatrach have signed an agreement to renew the gas procurement contracts from Algeria to Spain spanning to 2030 and which currently represent more than 40% of Gas Natural Fenosa’s overall gas procurement.
“This agreement is a major step forward to strengthen our historical strategic alliance with Sonatrach. Moreover, it undoubtedly constitutes a significant milestone in the relationship with Algeria as this renewal guarantees the stability of gas supply to Spain,” Francisco Reynés, executive chairman of Gas Natural Fenosa, pointed out.
In addition to contributing to the security of supply to the Spanish market, the agreement reinforces an optimal distribution of the supply mix for the country between natural gas (NG) supplied via pipelines, which represents 30% of domestic consumption, and liquefied natural gas (LNG).
With this renewal, the relationship between Gas Natural Fenosa, Spain’s leading gas company, and Sonatrach, the largest gas supplier to Spain, continues to move forward, once again, building on a 40-year old partnership.
Gas Natural Fenosa was one of the first operators in the world to opt for the Algerian gas supply and currently is one of Sonatrach’s two main customers worldwide. Since the agreements reached in June 2011, the Algerian company has become the fourth largest shareholder of Gas Natural Fenosa with a 4% shareholding.
The negotiations for the contract extensions have allowed both parties to reach favourable agreements.
