The state-owned Algerian oil company, Sonatrach, and Spanish company, Naturgy, signed amendments to the gas sales contracts that bind both companies. The signing of these amendments solidifies the partnership of both companies whose commercial relationship started in the 1970s.
The Chairman and Chief Executive Officer of Sonatrach, Toufik Hakkar, and the Chairman and Chief Executive Officer of Naturgy, Francisco Reynes, met in Algiers after the signing of the contracts to discuss possibilities for future cooperation between the two companies and the best ways to expand their commercial relations.
Both companies are shareholders of the MEDGAZ company that operates the gas pipeline connecting Algeria to Spain. The Algerian company holds a 51% stake in the company while the Spanish company has 49%.
Commenting on behalf of Sonatrach on the meeting and amendment made, Toufik Hakkar said, “The oil and gas industry has been strongly impacted by the COVID 19 pandemic. Sonatrach is overcoming, in close collaboration with its customers, the effects of this pandemic on Commercial activities. The agreement reached by Sonatrach and Naturgy reflects the strategic nature of the long-term and trusting relationship that binds them and through which they aim to consolidate their positions on the Spanish market.”
Speaking for Naturgy, Francisco Reynes said, “This agreement demonstrates the will of Sonatrach and Naturgy to continue their long-term partnership, which began decades ago. This strategic alliance is essential for the competitive and secure gas supply of the Spanish market, and therefore essential for the economic and social development of both countries.”