Algeria’s State run oil company, Sonatrach, has become the main shareholder in the Medgaz pipeline after the acquisition of a further 19.1% stake from Spain’s Cepsa, according to a press release.
Under the deal, Sonatrach will have a 51% stake, with Spain’s Naturgy Energy Group SA holding the remaining 49% in the pipeline which carries natural gas from Algeria to Spain, Sonatrach said in a statement.
No financial details were given on the stake acquisition. The Medgaz pipeline has a capacity of 8.2 billion cubic metres per year (bcm/y).
“Sonatrach thus will strengthen its position as a major and reliable supplier of gas to Europe,” the statement said.