Sonatrach and Engie agree new price terms: press
Algeria's Sonatrach has signed a three-year gas supply deal with France's Engie at a new price point, Reuters reported July 7.
The terms are likely to include a link to spot prices, as per earlier reports of the company's negotiations, allowing Sonatrach to benefit from near-term spikes caused by tighter markets.
Sonatrach is believed to be pushing its bargaining power as southern Europe looks to tackle energy inflation, as parts of the European energy system inch closer to financial collapse.
France purchases LNG from Algeria through its internal ports and LNG import facilities in neighbouring Spain, as well as the 10.2bn m3/yr Medgaz pipeline which crosses Spain into French territory. Sonatrach also sells gas to Greece, Italy and Portugal, with the latter served by the Transmed subsea pipeline connecting to Eni's Hassi R'Mel gas field.