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Algerian-Italian gas contract: renewal for ten years at a rate of 3 billion m3 / year

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The national oil company, Sonatrach signed Wednesday in Algiers, an agreement with the Italian energy group « ente nazionale for the Enameled Enamel » (ENEL) for the renewal of their contract of sale / purchase of natural gas for a period of ten (10) years.

The agreement was initialed by Sonatrach’s vice president of marketing, Ahmed Mazighi, and ENEL’s commercial director Claudio Machetti, in the presence of Sonatrach’s CEO, Rachid Hachichi.

Spread over eight (8) years with two (2) additional years optional, this contract provides Italy with a supply of 3 billion m3 per year, by Sonatrach.

Present at the signing ceremony, Sonatrach’s CEO, Rachid Hachichi, said the signing of the agreement is « the result of the efforts of Sonatrach, which has been devoting a lot of energy and resources to the problem for years. renewal of its long-term gas contracts « .

Recalling the signing on May 16 of a new natural gas sale / purchase agreement with the other Italian group « ENI », spread over ten (10 years) at the rate of nine (09) billion m3 / year, M Hachichi pointed out that these two agreements allow Sonatrach to « ensure a new replacement of twelve (12) billion m3 / year of gas for Italy for a decade from 2020 ».

To this end, he also felt that « thanks to this new contract, Sonatrach will be able to maintain and consolidate its position as a reliable supplier of Italy ».

He added that this signature is also an acknowledgment of Sonatrach’s role as a « reliable » supplier of gas to Southern Europe.

For his part, Mr. Machetti considered that the signing of this new contract is « a continuity of history that began in 1991, almost 30 years of relations between Sonatrach and ENEL ».

Asserting that Algeria remains the main supplier of natural gas for ENEL, Mr Machetti wanted to « thank » Sonatrach, who, he said, « understood » the changes in the Italian and European gas markets.