Gas Natural Fenosa, one of Spain’s largest energy companies, has renewed a deal to take natural gas from Algeria for another 12 years in what amounts to a €30bn agreement over the life of the contract, reported The Financial Times.
The deal will see Gas Natural Fenosa buy gas from Algeria’s state-energy company Sonatrach equivalent to more than 40 per cent of the Spanish company’s annual gas purchases and worth €2.5bn a year, according to a person familiar with the details.
In a statement, the company said its 40-year-old “partnership” with Sonatrach would be reinforced. The Algerian state-backed company already owns 4 per cent of the Madrid-listed energy company.
“This agreement is a major step forward to strengthen our historical strategic alliance with Sonatrach,” Francisco Reynés, executive chairman of Gas Natural Fenosa said in a statement.
“This renewal guarantees the stability of gas supply to Spain.”