Gas Natural Fenosa and the Algerian company Sonatrach (Société Nationale pour la Recherche, la Production, le Transport, la Transformation et la Commercialisation des Hydrocarbures, S.p.A), have signed an agreement to renew the gas procurement contracts from Algeria to Spain spanning to 2030 and which currently represent more than 40% of Gas Natural Fenosa’s overall gas procurement.

“This agreement is a major step forward to strengthen our historical strategic alliance with Sonatrach. Moreover, it undoubtedly constitutes a significant milestone in the relationship with Algeria as this renewal guarantees the stability of gas supply to Spain”, Francisco Reynés, Executive Chairman of GAS NATURAL FENOSA, pointed out.

In addition to contributing to the security of supply to the Spanish market, the agreement reinforces an optimal distribution of the supply mix for the country between natural gas (NG) supplied via pipelines, which represents 30% of domestic consumption, and liquefied natural gas (LNG).

With this renewal, the relationship between Gas Natural Fenosa, Spain’s leading gas company, and SONATRACH, the largest gas supplier to Spain continues to move forward, once again, building on a 40-year old partnership.

GAS NATURAL FENOSA was one of the first operators in the world to opt for the Algerian gas supply and currently is one of SONATRACH’s two main customers worldwide. Since the agreements reached in June 2011, the Algerian company has become the fourth largest shareholder of GAS NATURAL FENOSA with a 4% shareholding.

The negotiations for the contract extensions have allowed both parties to reach favourable agreements.

About Gas Natural Fenosa

Gas Natural Fenosa is a leading Madrid-based multinational group in the energy sector leading the way in gas and electricity integration in Spain and Latin America. It operates in over 30 countries, has an installed capacity of 15.4 MW and a diversified electricity generation mix. It is also one of the largest natural gas distributors in Latin America. The company is focused on a commitment to service and safety for its over 18 million customers on all five continents and the more than 15,000 professionals it employs.

Gas Natural Fenosa is a leader in the commercialisation of gas in the Iberian Peninsula and one of the main liquefied natural gas (LNG) operators in the world, supplying LNG not only to Spain but customers around the world. It has been a world leader in LNG since 1969, operates throughout the gas value chain with a supply portfolio of 30bcm in the Atlantic and Mediterranean basins, and has a fleet of nine LNG tankers. As an expert in LNG, Gas Natural Fenosa develops LNG infrastructure at ports by offering customised solutions to shipping companies and is playing a crucial role in the Mediterranean bunkering market.