Today, the Spanish energy business Naturgy and the Algerian hydrocarbon company “Sonatrach” established an understanding regarding the evaluation of natural gas contracts delivered through the “Medgaz” pipeline.
The two parties resolved to review the rates of the current gas supply contracts in light of recent market changes in order to make sure that the balance of the active contracts is founded on mutual advantage.
According to Sonatrach, the signing of this agreement enhances their relationship with the Spanish company Naturgy and wants to increase their market share in Spain.
More than 83 billion cubic metres of gas have been exported by Sonatrach to the Spanish market during the previous ten years, bolstering Algeria’s position as a dependable supplier of gas to the European market.
The negotiations with Sonatrach are going very well, according to Francisco Renes, president and chief executive officer of the Spanish company Naturgy.
He expressed his optimism that Spain would soon be able to share positive news about pricing stability in a statement to the Spanish press.
Referring to some predictions that anticipate a big increase in costs, he noted that prices will rise but not to the level that they are being risked.
Renes confirmed that gas costs are at their highest point in history, and the CEO provided evidence showing the gas price peaked in history in August (350 euros per megawatt hour).
Al-Nahar Al-Jazeera is the source.
A new gas price revision deal between Spain and Algeria
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