Sonatrach signs 20-year gas contract with Spanish firm Endesa

23/05/2006

[File] Miranda

Sonatrah CEO Mohamed Meziane and Spanish firm Endesa's CEO Rafael Miranda signed a sale and purchase contract of Algerian natural gas Monday (22 May) in Algiers. The contract envisages the delivery of 960 million cubic metres of natural gas per year over 20 years, via the Medgaz underwater gas pipeline between Beni Saf and Almeria. The 120-mile long pipeline is expected to cost $1.3 billion to build and should be completed by 2008.

The deal with Endesa is the second-largest gas delivery deal to Spain to date. At the end of 2005, Sonatrach signed an agreement to sell 1.6 billion cubic metres of gas per year to Spanish electric group Iberdrola. (APS, El Moudjahid, Liberte, El Watan)