Sonatrach loses position in Medgaz

GAS NATURAL FENOSA said it signed an agreement for the purchase from Algeria’s energy group Sonatrach of a 10% shareholding in Medgaz, S.A. (and 10% of shareholders loan) for 61.9 million euros.

Following this agreement, Sonatrach lost its strong position in Medgaz pipeline as its share was reduced to 26 percent from 36 percent. It has not confirmed the information yet although the Spanish company announced it on its official website.

Sonatrach’s communication department told Echorouk “it has no idea about that.”

The release said the acquisition of this shareholding is associated to the transfer to GAS NATURAL FENOSA of 10% of the gas pipeline’s transport capacity.

This capacity will be used for a new supply contract of 0.8 bcm per year. The supply contract lasts for 18 years and deliveries will begin in the coming month of February.

Algiers and Madrid signed on Thursday five cooperation agreements in many fields following the fifth high level summit between Algeria and Spain.

Both sides signed an agreement for industrial and partnership promotion agreement, a memorandum of understanding in energy cooperation, a memorandum of understanding to facilitate visas acquisition, a memorandum of understanding in cultural cooperation and an administrative agreement on scientific, technological cooperation and mutual support in civil protection.

The two countries also signed cooperation agreements in construction, housing, shoes and paper manufacturing and textile industry development center.