Algeria is revising upwards the price of gas delivered to France. The negotiations between Sonatrach and the French group Engie on the price of gas delivered via the Medgaz gas pipeline have just signed an agreement. It is the Algerian oil group which announced this Thursday in a press release.
The two companies have reached an agreement in Algiers for their contract for the purchase and sale of natural gas through Medgaz, announces Sonatrach. This is the renewal of an agreement which was concluded in 2011 between the two groups on the delivery of Algerian gas to France via the Medgaz gas pipeline which directly links Algeria to Spain.
“Through this agreement, the two parties have agreed to define the contractual sale price applicable over a period of three years, up to 2024, to take into account market conditions”says Sonatrach.
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The Algerian gas giant and the French group have “confirmed their intention to extend their partnership on LNG and natural gas”adds Sonatrach, announcing that it “will strengthen its share in Engie’s supply portfolio, allowing both groups to continue their diversification and contribute to the energy security of European customers. »
Beyond the deliveries of Algerian gas to France, Sonatrach and Engie, “on the strength of their historical partnership around gas”, are also “committed to working together to reduce their carbon footprint and to assess new opportunities, in particular on the development of hydrogen. »
With the rise in gas prices on the world market, Sonatrach has started negotiations with its French, Spanish and Portuguese customers supplied via Medgaz to obtain an upward revision of prices.