The Algerian company Sonatrach says it will not send more gas to Spain because it would need more money to do so.
In a statement made at the same time as the signing of an agreement between the company and the Italian energy group Enel, company head Taufik Hakkar said this:. The agreement is part of a deal to sell natural gas to markets in Italy and Spain.
When asked about increasing the amount of gas for the Spanish market after the signing, Hakkar said, “We are connected by one pipeline with a limited capacity of 11 billion cubic meters. We will not increase more than that, and the increase needs new investments.”
In a speech given before the deal was signed, Hakkar said that it would allow Sonatrach, Enel, and its Spanish subsidiary to work together in a strong way and grow their relationship over the next few to ten years.
It was agreed upon by Hakkar that more gas would be sent to these users, especially Italy. He also said that the relationship with Enel is a long-term contractual relationship.
He said that the deal was mostly about changing prices and that the amount and price could not be made public. He also said that the price change “will be done with all Sonatrach customers, not just the Spanish.”
Hakkar said, “We have 11 clients; we have agreements with 6 of them. There are 5 left, and we are in talks with them all the time.”
Both sides of the agreement said they wanted to improve the long-standing partnership between Sonatrach and the Enel complex. This would make the business relationship stronger in the natural gas field.
Source: Al-Shoruk, Algeria
