The Spanish energy company Gas Natural Fenosa has renewed its gas supply agreement with the Algerian state-run oil and gas company Sonatrach, which will ship natural gas from Algeria to Spain until 2030. Sonatrach currently supplies 9.8 bcm/year to Gas Natural Fenosa, divided in three contracts which started respectively in 1995 (6 bcm/year through 2020), in 2004 (3 bcm/year through 2026) and in 2012 (0.8 bcm/year through 2030). Gas deliveries for all contracts will thus be extended to 2030.
The agreement is an extension to the agreement inked by the two companies in June 2011. Gas Natural Fenosa estimates that this €30bn agreement accounts for more than 40% of the company's overall gas purchases. Gas Natural Fenosa is one of Sonatrach's two global main customers, while Sonatrach is the fourth largest shareholder in Gas Natural Fenosa with a 4% interest.
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