Algeria’s Sonatrach expands for 10 years gas exports to Italy’s ENEL
The deal cements tight cooperation between the state-run gas company and the Rome-based multinational. The partnership dates back to 1991. The new deal will end in 2028, Sonatrach said in a statement.
The Italian utility company welcomed the deal noting that it will help diversify its supply portfolio.
“The new contract terms enable ENEL to make its gas supply portfolio more diversified, competitive and flexible, providing security of supply to the Italian system,” ENEL, which is also active in electricity generation, said in a statement.
ENEL, where the Italian state is the main shareholder, posted a revenue of €75.7 billion.
Sonatrach last month inked a similar deal with Italy’s giant ENI and on June 12, it signed a 10-year gas exports extension agreement with Portuguese energy company Galp.
Algeria is one of Europe’s largest gas suppliers, with a market share put at 14 per cent.
The North African country produces 130 billion cubic meters of natural gas per annum. 50 billion of the output is assigned for exports.