After its acquisition of 19.10% of the Spanish Petroleum company CEPSA‘s shares in Medgaz Sa, SONATRACH the national state-owned oil company of Algeria has increased its participation by 8.04% and has become the majority shareholder with 51% of total shares according to the Press Release published on May 30, 2020.
With this acquisition, SONATRACH becomes the new majority shareholder of Medgaz SA, with its historic partner Naturgy keeping hold of 49% of total shares. SONATRACH thus strengthens its position as a major and reliable supplier of Algerian Gas through the Medgaz gas pipeline to its customers in Europe, in particular, in the Iberian Peninsula.
The Medgaz pipeline, spanning 200km, feeds 8.2 billion cubic meters of natural gas per year to Spain. In 2021, the $1.4 billion infrastructure will be expanded to increase its capacity by 25% to 10.2 billion cubic meters per year by adding a 4th Turbo-Compressor at the Beni-Saf Compression Station in Algeria.