BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Natural Gas

Italy's Enel extends Algerian gas import deal with Sonatrach to 2028

LNG

As US liquefaction projects come online, lower European and Asian prices are possible

Natural Gas

Platts Inside FERC Bidweek Watch

Renewables | Natural Gas | Fuel Oil | Infrastructure & Utilities

Central American Energy Conference, 22nd Annual

Natural Gas | Natural Gas (European)

Interview: European gas network operators preparing for greener future

Italy's Enel extends Algerian gas import deal with Sonatrach to 2028

London — Italy's Enel has agreed to extend its Algerian gas import deal with state-owned Sonatrach to 2028, with the possibility of adding a further two years to the agreement at a later date, the utility said Wednesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Enel's existing long-term gas import deal with Sonatrach from 1997 -- which was originally for some 6 Bcm/year -- was due to expire at the end of 2019.

Sonatrach has moved to renew a number of its export deals with European buyers in recent months as it looks to lock in long-term supplies to the end of the next decade amid an increasingly competitive European market.

Earlier this month, Portugal's Galp agreed to buy 2.5 Bcm/year of Algerian gas from Sonatrach for a period of up to 10 years, replacing a previous 23-year deal for 2.3 Bcm/year set to expire at the end of this year.

That deal followed another new long-term contract Sonatrach agreed with a European buyer, Italy's Eni, in mid-May. That new agreement is for the import of Algerian gas through 2027 with an option to be extended by a further two years to 2029.

The deals come at a critical juncture for Algeria, whose president, Abdelaziz Bouteflika, resigned in April after almost 20 years in power, amid regular civilian protests against the ruling administration.

PORTFOLIO DIVERSIFICATION

Enel said its new agreement -- whose volume were not disclosed -- with Sonatrach consolidated the relationship between the two companies.

"The new contract terms enable Enel to make its gas supply portfolio more diversified, competitive and flexible, providing security of supply to the Italian system," Enel said.

It said it also reflected the evolution of the Italian gas market since the first supply contracts were signed in 1991.

-- Stuart Elliott, stuart.elliott@spglobal.com

-- Edited by Dan Lalor, daniel.lalor@spglobal.com