Gas Natural Fenosa and Sonatrach have signed an agreement for the purchase from the latter of a 10% stake in Medgaz for €61.9m.
Medgaz is the company which owns the property and operates the Algeria-Europe underwater gas pipeline connecting Beni Saf with the Almeria coast, with a 8 bcm/year capacity.
The acquisition of this shareholding is associated to the transfer to Gas Natural Fenosa of 10% of the gas pipeline’s transport capacity. This capacity
will be used for a new supply contract of 0.8 bcm/year. The supply contract lasts for 18 years and deliveries will begin in the coming month of February.
With this agreement, Gas Natural Fenosa continues to strengthen its gas supplies and to consolidate its relationship with the Algerian company, with whom it has already signed long-term gas supply contracts for a total of 9 bcm of gas, transported to Spain through Morocco and the Straits of Gibraltar by means of the Maghreb- Europe gas pipeline, of which it is the majority shareholder.
Earlier this month, Iberdrola and Endesa sold their stakes in Medgaz to Fluxys (20% and 12%, respectively).