Algerian state-owned oil and gas company Sonatrach and Engie have renewed their gas sales and purchase agreement covering the medium and long term. Sonatrach will deliver gas through the Trans-Mediterranean Pipeline (from Algeria via Tunisia to Italy) and will also export LNG to the 3 bcm/year Fos Tonkin LNG terminal in France. The volumes to be sold and the length of the agreement were not specified.
Engie imports nearly 1 bcm/year of gas from Algeria to Spain through the Medgaz gas pipeline. The French company also used to have three LNG import contracts with Sonatrach - two 1972-2020 contracts for 3.4 bcm/year and 2 bcm/year and one 1976-2019 contract for 5 bcm/year - that were transferred to Total in July 2018, as part of a broader sale of Engie's upstream LNG assets to Total for US$2bn.
Sonatrach, which exported more than 51 bcm of gas in 2018, has recently renewed gas exports contracts with Enel, Galp Energia, Eni, Botas, Naturgy, and Edison.