Algeria Reduces The Price Of Selling Gas To Tunisia By 10%

Tunisian-Algerian negotiations to renew the contract for the purchase of Algerian gas recently led to the acceptance of the Algerian side to reduce the old contractual price by 10%, which will enable the Tunisian Electricity and Gas Company to reduce the cost of the Algerian gas purchase bill and the extension in the term of payment from 15 days to 30 days, the Tunisian private radio station, “Mosaic FM”, said.

The Tunisian Electricity and Gas Company submitted a proposal to the official government agencies and in coordination with the supervisory authorities, including the presidency and the Foreign Ministry, intending to request the possibility of reviewing the old contractual formula and adopting a new formula that would reduce the total cost of purchasing Algerian gas.

According to “Mosaic FM”, the Tunisian Electricity and Gas Company entered into negotiations with the Algerian party represented by Sonatrach, which started since April 2018 and continued to June 2020 and culminated in an agreement between the Tunisian and Algerian parties through which Tunisia’s needs of Algerian gas were set for the period 2020-2030, and that by maintaining the current contractual quantities estimated at 2 billion and 500 million cubic meters annually for the period 2020-2025 and raising the contractual quantities to 3 billion cubic meters for the period 2026-2029.

The agreement concluded between the Tunisian and Algerian parties also requires that the daily contractual quantities are adjusted during the summer period to reach 11 million cubic meters during July and August.