Energy: Sonatarch, Spanish Naturgy sign amendments to gas sale agreements

October 9th, 2020

APS : Thursday, 08 October 2020

ALGIERS- National Hydrocarbon Company Sonatrach and Spanish group Naturgy signed Thursday, in Algiers, the amendments to the gas sale agreements between the two companies, said Sonatrach in a communiqué.

These amendments to the gas sale agreements were signed shortly before the meeting between CEOs of Sonatrach and Naturgy, Toufik Hakkar and Francisco Reunes, respectively, said the source.

This meeting was held on the sidelines of the official visit paid to Algeria by Spanish Prime Minister Pedro Sanchez.

“The signing of these amendments will strengthen the partnership between Sonatrach and Naturgy, whose commercial relation dates back to the 1970s and that are also the two shareholders of Medgaz company which exploits the gas pipeline linking Algeria with Spain, 51% and 49% respectively,” said the source.

“Oil and gas industry were strongly affected by the Covid-19 pandemic, Sonatrach has overcome, in close collaboration with its customers, the effects of this pandemic on the commercial activities,” said Hekkar.

According to him, the agreement reached by Sonatrach and Naturgy reflects “the strategic character” of the long-term relations and trust between them and through which they intend to strengthen their positions in the Spanish market.

For his part, Naturgy’s CEO said that “this agreement shows the two companies’ willingness to continue their long-term partnership, and which started few decades ago.”

“This strategic alliance is essential to supply the Spanish market with competitive and safe gas, and thus essential to the two countries’ economic and social development,” added the source.