Sat. Jul 20th, 2024

Algeria has threatened to halt gas deliveries to Spain’s “Naturgy” if the latter decides to sell its shares to another company, Reuters reports.

The threats come amid media reports that Abu Dhabi National Energy Company (TAQA) is in negotiations to acquire a full share of “Naturgy”, Spain’s largest natural gas company.

“Naturgy” has a significant stake in the main gas pipeline between Spain and Algeria, in addition to key contracts with Algeria’s “Sonatrach” for gas supply.

The company has also signed contracts for the supply or payment of a fine until 2032 with Algeria, reflecting the importance of relations between the two countries in the field of energy.

For its part, “Naturgy” denied participating in any negotiations on the sale of its shares, stressing that it is committed to the current contracts with Algeria.

Meanwhile, TAQA has indicated that it is in talks with other shareholders of “Naturgy” about buying their shares, adding to tensions in the struggle for control of the company.

Algeria was Spain’s largest gas supplier in the first three months of the year, according to data from Spanish gas operator “Inagas”, accounting for nearly a third of total gas imports, with the bulk of that supply coming via pipelines.

 

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