Spanish LNG player 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.
These contracts currently represent more than 40 percent of Gas Natural Fenosa’s overall gas procurement, the company said in a statement.
Speaking of the agreement renewal, Francisco Reynés, executive chairman of GNF, said it “constitutes a significant milestone in the relationship with Algeria as this renewal guarantees the stability of gas supply to Spain.”
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 supplied via pipelines, which represents 30 percent of domestic consumption, and LNG.
Since the agreements reached initially in June 2011, the Algerian company has become the fourth largest shareholder of Gas Natural Fenosa with a 4 percent shareholding.