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Gaz de France has reached an agreement with Sonatrach to extend its supply contracts for LNG to 2019. Under current market conditions, these contracts represent a total annual amount of approximately Û 2.5 billion.
France thus confirms its relationship with Algeria where Gaz de France is the leading buyer of LNG. Gaz de France's supply of Algerian natural gas involves a total volume of approximately 100 billion m3, and represents almost 15% of total supply by the group in 2006, making Algeria one of its principal suppliers.
The 42 years of cooperation between Gaz de France and Sonatrach was also broadened at the end of 2006 with a new 20 year contract involving the purchase of approximately 1 billion m3 of natural gas to be transported to Medgaz. This gas pipeline, in which Gaz de France is a 12% partner with Sonatrach, will link Spain to Algeria. Its commissioning is expected to begin in 2009.
Jean-Francois Cirelli, Chairman and CEO of Gaz de France said, 'this agreement will allow Gaz de France to ensure a significant part of French supplies until 2019. It represents an important step in the relationship which, for more than forty years, has bonded us.'
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