Algeria will cancel its gas deliveries to Naturgy if the Spanish company’s shares are sold to another company, a source familiar with the matter told Reuters on Monday.
The source did not name the company that could buy Naturgy’s shares, but Abu Dhabi’s TAQA said last month it was in talks with Naturgy’s three largest shareholders that could lead to a possible full takeover bid for the largest. Spanish natural gas company.
Naturgy has a stake in a key gas pipeline between Spain and Algeria, as well as key contracts with Algeria’s Sonatrach, which supplies gas to Spain via a gas pipeline. Naturgy also has a long-term contract to import about 3 billion cubic meters (bcm) of Russian liquefied natural gas per year.
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A Naturgy spokesperson told Reuters that the company has signed supply contracts with an acceptance or payment clause until 2032 with Algeria.
The spokesperson added that Naturgy is not part of any negotiations regarding the company’s participation, as the company noted in the relevant facts published in the regulator CNMV.
A spokesperson for the Spanish Ministry for the Ecological Transition declined to comment.
TAQA said last month it was in talks with private equity firms CVC and GIP, each owning more than 20% of Naturgy, to buy their stakes.
TAQA also said it was talking to Naturgy’s largest shareholder, Criteria, which owns a 26.7% stake, about a possible partnership deal.
Algeria was Spain’s largest gas supplier in the first three months of the year, according to data from the Spanish gas network operator Enagás. It accounted for approximately a third of total gas imports. Most of these supplies are made through gas pipelines.
With information from Reuters
