RT.com
30 Jun 2022, 19:50 GMT+10
Algerian energy giant Sonatrach wants to take advantage of rising prices, Reuters reports
Algeria's state oil and gas producer Sonatrach is negotiating long-term contracts with EU buyers, hoping to cash in on rising energy prices, sources familiar with the matter told Reuters.
The company is reportedly considering several options, including a partial link to spot prices in contracts that have historically been linked to the price of Brent crude.
Concerns over Russian gas supply to Europe have sent benchmark Dutch TTF contracts up more than 80% and 110% respectively so far this year, Reuters data shows. Brent crude soared 55% in the same period.
Meanwhile, Algeria's role as a gas supplier for Italy, Spain and other southern European countries has been growing due to the conflict in Ukraine and Western sanctions on Moscow.
Reuters sources pointed out that Algeria and other sellers are trying to find ways of recouping lost revenue stemming from long-term contracts being reliant on a single pricing index.
"Sonatrach has very strong bargaining power because it has got the gas, and realizes that Europe needs it," one of the sources said, adding that "buyers now realize they are being stuck between a rock and a hard place."
A second source told the media that Sonatrach is seeking to review prices with companies that receive gas through the undersea Medgaz pipeline, including Naturgy, Cepsa and Endesa in Spain, Engie in France and Galp in Portugal.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Toronto Telegraph news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Toronto Telegraph.
More InformationBATTLE CREEK, Michigan: In a major consolidation of iconic food brands, WK Kellogg has agreed to be acquired by the owner of Ferrero...
WASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...
NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...
SAN FRANCISCO, California: Nvidia, the Silicon Valley chipmaker at the heart of the artificial intelligence boom, this week briefly...
REDMOND, Washington: Artificial intelligence is transforming Microsoft's bottom line. The company saved over US$500 million last year...
WASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
OTTAWA, Canada: With Canada Post struggling to maintain operations amid labour unrest, rivals like FedEx and UPS are stepping in to...
(Photo credit: Jeff Hanisch-Imagn Images) The potential tying run had just reached base Saturday when Milwaukee Brewers third baseman...
(Photo credit: Patrick Gorski-Imagn Images) After hitting their season's low point a week ago, the Cleveland Guardians have reversed...
(250713) -- TORONTO, July 13, 2025 (Xinhua) -- Deybi Flores (2nd L) of Toronto FC scores with a header during the 2025 Major League...
(Photo credit: Eric Canha-Imagn Images) In his 51st career start, Garrett Crochet accomplished two feats in one dominant outing:...
(Photo credit: Dennis Lee-Imagn Images) All-Star Brent Rooker hit a tiebreaking two-run homer and drove in three runs overall to...