Naturgy, Sonatrach to Start Medgaz Pipeline Expansion in 4Q

By Giulia Petroni

Naturgy Energy Group SA said Tuesday that in partnership with Algeria's state-owned Sonatrach it will start the expansion of the Medgaz gas pipeline in the fourth quarter of the year.

Starting from the fall, the pipeline's capacity will be expanded by 25%, or 2 billion cubic meters a year, to more than 10 billion cubic meters a year, the Spanish energy company said. The expansion, which had already been agreed, entailed an investment of around $90 million.

Sonatrach has a 51% stake in Medgaz, while Naturgy holds the remaining 49%, with a shareholder agreement giving the companies joint control of the pipeline connecting Algeria and Spain.

The Algerian oil-and-gas company has a 4.1% stake in Naturgy.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

07-13-21 0725ET