Algeria Signs Gas Supply Deals with Spain, Italys Eni

  • 8/16/2018
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Algeria has signed deals to provide gas to Spain and to Italys Eni as it negotiates new gas contracts with European partners, the head of Algerian state energy firm Sonatrach Abdelmoumen Ould Kaddour has said. Algeria has signed a nine-year deal to supply Spain with nine billion cubic meters (bcm) of gas per year, as well as a deal to supply Italys Eni with 3 billion cubic meters of gas per year, Ould Kaddour said on Wednesday. He did not give a timeframe for the deal with Eni. A senior Sonatrach official said the firm was also in talks with Shell over developing joint projects in Algeria, part of a push to boost domestic production with new partners whilst trying to build reserves overseas. Algeria has been trying to attract more investment to its vital oil and gas sector, with Ould Kaddour pursuing a multi-pronged strategy since he took over as CEO in March 2017. "Our aim is definitely to rise our reserves by a presence overseas," said the senior official, who asked not to be named. Sonatrach has already held talks with Niger and Iraq for exploration contracts. Talks with Bolivia are scheduled for next week. The Sidi Rezine refinery in the Algerian capital Algiers will come back online at the beginning of 2019 with an estimated output of 3.6 million tons of refined products, a senior Sonatrach official told Reuters on Wednesday. Sidi Rezine has been upgraded and was previously producing 2.7 million tons out of Algerias total annual production of 30 million tons in refined products.

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