Gas Natural Fenosa buys 10% of Medgaz submarine pipeline from Algerian company Sonatrach
Leading Catalan electric and natural gas company Gas Natural Fenosa has bought 10% of Medgaz, a submarine gas pipeline between Algeria and Europe that provides natural gas to the south of Europe. The pipeline has a capacity of transporting eight billion cubic meters per year and the acquisition has cost the Catalan company €61.9 million. Gas Natural Fenosa will use 10% of the transport capacity of the gas pipeline. The contract will last for 18 years.
Barcelona (ACN) – Barcelona-based Gas Natural Fenosa has bought 10% of the Medgaz gas pipeline between Algeria and Europe from the Algerian company Sonatrach. The Medgaz Company operates the submarine gas pipeline that goes from the harbour of Beni Saf, Algeria, to the coast of Almeria in the south of Spain. This strategic infrastructure ensures the supply of natural gas to the south of Europe. The acquisition has cost €61.9 million and allows the Catalan company to use 10% of the transport capacity of the gas pipeline, which is eight billion cubic meters per year. The contract will last for 18 years.
The agreement seeks to consolidate business relations between Gas Natural Fenosa and Sonatrach, a collaboration that started in June 2011. They already had a contract of 9 billion cubic metres of natural gas supplies with the Magrib-Europa pipeline that provides gas to Spain through Morocco and the Strait of Gibraltar.
Gas Natural Fenosa’s entry in to the Medgaz consortium of partners has changed the share holdings of the five international electric companies. Sonatrach, which had 36% of the company, now has 26%. While the Spanish companies CEPSA and Iberdrola maintain their 20% share, along with the 12% of Endesa and 12% of Gaz de France.