This Is How “Sonatrach” And Spain’s “Naturgy” Anticipate Shady Maneuvers Of Moroccan regime
The national hydrocarbons group “Sonatrach” and the Spanish energy company “Naturgy” have agreed to operate the additional capacities to transport gas through the “Medgaz” pipeline as of next autumn, with quantities amounting to 10 billion cubic meters annually, in anticipation of Morocco’s adverse move not renewing the contract for the Maghreb-Europe pipeline that passes over its lands.
A statement by the Spanish company “Naturgy” published on its official website, which “Echorouk” reviewed, stated that the CEO of Sonatrach, Toufik Hakkar, and the Executive Director of the Naturgy Company, Francisco Reines, reached an agreement on operating the additional capacities for transporting gas through the Medgas pipeline as of from the last quarter of the current year.
The national hydrocarbon company Sonatrach and its Spanish partner in the Medgaz pipeline, Naturgy, have announced that the Medgaz expansion will enter into service in the fourth quarter of 2021, Naturgy said on Tuesday 13 July 2021 in a statement published on its official website.
Francisco Reynés, president of Naturgy, and Toufik Hakkar, president of Sonatrach, reached the agreement during a working meeting held during a visit to Medgaz in Orán (Western Algeria).
When the Medgaz expansion, which has been the subject of investments of 90 million dollars (73 million euros), becomes operational, it will transport 25% of the natural gas consumed in Spain and will strengthen the strategic relationship between the two companies, the same press release said.
The agreement will see the pipeline increase its capacity by 2 billion m3/year, an increase of 25%, to reach 10 billion m3/year from the fourth quarter, the same source said.
The expansion saw an investment of around $90 million (€73 million) and the installation of a fourth turbocharger to increase capacity to 10 bcm/year. Once the expansion is operational, 25% of Spain’s natural gas consumption will transit through Medgaz.
After a decade of continuous operation and an initial investment of more than one billion dollars, when the Medgaz expansion starts operating, it will strengthen Spain’s security of supply as it is a key infrastructure for the transport of natural gas.
The Spanish company stressed that “after a decade of uninterrupted operation and an initial investment of more than $1,000 million (around €843 million), the commissioning of the Medgaz expansion will strengthen Spain’s security of supply, as it is a key infrastructure for the transport of natural gas”.
As a reminder, Medgaz is currently jointly owned by Sonatrach (with a 51% stakes) and Naturgy (with the remaining 49%, via the SPV in which BlackRock participates).
