Report: Sonatrach, Engie to renew LNG supply contract

Sonatrach of Algeria is reportedly set to extend the liquefied natural gas supply deals it has with the French utility and LNG player Engie. 

Citing a Sonatrach source, Reuters reports the 10 billion cubic meters of LNG per year contract is set to be extended before the end of March.

Sonatrach CEO Amine Mazouzi recently said that the new contracts will be signed for periods of at least 10 to 15 years, however, he added that no contract will be longer than 20 or 25 years.

Algerian company, that has been hit by the depressed oil prices has turned to combining its long-term contracts with spot cargo sales to mitigate the effects of the oil prices. Sonatrach’s long-term contracts with its European customers will end by 2020.

It is expected that Algerian LNG exports reach 57 billion cubic meters in 2017, increasing from 54 bcm recorded in 2016.

LNG World News Staff