Naturgy and Algeria agree on the price of the gas contract for this year

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Spanish gas company continues to negotiate prices for 2023

Naturgy and Sonatrach have agreed to revise the price of their natural gas supply contracts that will retroactively affect volumes delivered this year, and will continue to negotiate prices applicable from 2023.

As reported by the company to the National Securities Market Commission (CNMV), the agreements set the new price that will be applied retroactively to the volumes delivered to the end of 2022 and that, as set out in the contracts between Sonatrach and Naturgy for revisions of price, taking into account market conditions.

For example, the energy company chaired by Francisco Reynés indicated that the two companies will continue to negotiate the prices applicable from 1 January 2023 under the contractual clauses.

The agreements signed this Thursday have been approved by Naturgy’s board of directors and are subject to ratification by the highest Algerian government authorities.

This morning, at an information meeting organized by CEOE-Cepyme, Reynés himself assured that negotiations with Sonatrach for the revision of the natural gas supply contract with Algeria are “progressing very well” and that there would be “good news” “soon”. . », although he stressed that this «good news will not be complete, as prices will logically rise».

However, he stressed that the price revision would not be as high as “the exorbitant numbers that have been said on some forums”. Naturgy conducted this open review throughout the year, as the previous one took place in 2020 with market prices around EUR 20 per megawatt hour (MWh), while natural gas is currently traded around EUR 180/MWh.

The contracts currently in force between Naturgy and Sonatrach were signed more than 20 years ago and run until 2030 for an annual volume of approximately 5 billion cubic meters. gas for Naturgy through take or pay clauses (which oblige payment even if the gas is surrendered).

Both companies are two of the oldest commercial partners in gas supply to Europe since they signed their first contract in 1965, two years after Sonatrach was founded.

Source: La Verdad

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