Enel is negotiating new natural gas contracts with Algeria to replace current contracts set to expire soon, Reuters reports.
The company is looking to delink its natural gas contracts from the price of oil, the CEO of Enel, Francesco Starace, said, according to Reuters.
“Our intention is not to cancel them [old contracts] but substitute them with different contracts which are not oil-linked anymore,” he said.
The move could protect the company from the volatility of the oil markets. The size of the contracts being negotiated is unknown.
Enel is an international energy company based in Italy.