Gas Natural Eyes Sonatrach Deal for Medgaz Stake

Source: Reuters 4/20/2012, Location: Africa

Gas Natural expects to conclude a deal struck last year with Algerian state-owned gas firm Sonatrach to buy a stake in the Algeria-Spain Medgaz pipeline, the Spanish utility's chief executive said.

Sonatrach and Gas Natural agreed in principal last June that Gas Natural would take a 10 percent stake in the pipeline as part of a settlement to a long-running legal row between the two companies over payments for gas imports from Algeria, Spain's main supplier.

"Negotiations are progressing and we are confident of reaching an agreement," Rafael Villaseca told journalists before a shareholder meeting on Friday.

Sonatrach owns 36 percent of Medgaz, while Iberdrola , Abu Dhabi's Cepsa, Enel's Endesa and Gaz de France are the other consortium members. Sonatrach also owns 3.85 percent of Gas Natural.

Medgaz began pumping gas in March last year and can transport up to 8 billion cubic metres annually, or 22 percent of Spain's gas needs, but has been running below capacity due to slow Spanish demand and the country's limited means of selling gas on to neighbours.

Spain is typically the world's eighth-largest natural gas importer. Villaseca reiterated Gas Natural's earning targets for 2012 and said it may update its targets for 2014.

Gas Natural is targeting earnings before interest, tax, depreciation and amortisation (EBITDA) of 5.0 billion euros ($6.6 billion) in 2012 and a net profit of about 1.5 billion. Some analysts have queried the targets due to regulatory changes and a difficult operating environment. ($1 = 0.7609 euro)


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Related Categories: Civil Works  Civil Works - Finishing works  Construction Contractors  Electrical Works  Engineering Procurement and Construction (EPC)  Engineering Procurement and Construction Management (EPCM)  General  Mechanical Works  Pipe Lines Installations  Steel Works 

Related Articles: Civil Works  Civil Works - Finishing works  Construction Contractors  Electrical Works  Engineering Procurement and Construction (EPC)  Engineering Procurement and Construction Management (EPCM)  General  Mechanical Works  Pipe Lines Installations  Steel Works 


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