Spain Seeks to Extend Algerian Gas Deal at Current Prices Through 2024

5 April 2022 – byPrince@Bladi · 2 min read

The Spanish company Naturgy has been negotiating since last year with the Algerian national company, Sonatrach, the renewal at the same price of its gas contract until 2024, in a context of global rise in hydrocarbon prices.

For the 2022-2024 period, Algeria will be able to continue to supply gas to Spain at the same price as currently, in the best case scenario. This is what Naturgy’s president, Francisco Reynés, indicated on Monday, who announced that a price decrease would be impossible in the current context. Spanish electricity demand fell by 4% in March and 2.3% since January compared to 2021, according to 20minutos.

Reynés mentioned the ongoing renegotiation of gas supply from Algeria, two days after Sonatrach CEO Toufik Hakkar said he would maintain the price for all his partners, except Spain. "Since the crisis in Ukraine, the price of gas and oil has exploded. Algeria has decided to maintain the prices of the contracts for all its customers. However, a review of the prices with our Spanish client is not excluded," he said in an interview with APS.

Undoubtedly, these statements were made in reaction to Spain’s decision to support Morocco’s autonomy plan for the Sahara. But they come especially in a context of the end of the gas contract between Naturgy and Sonatrach, which calls for an "ordinary review" of the gas selling price. In any case, it is not excluded that the Algerian gas arriving in Spain between 2022 and 2024 will be more expensive, warned the president of Naturgy, which holds 49% of Medgaz, the remaining 51% belonging to Sonatrach.

Category: Spain

Keywords:

Spain Algeria Gas