Algeria, Portugal sign agreement on gas deal for another 10 years

Algeria has confirmed the extension of its gas deal with Portugal for another decade.

Algerian energy giant Sonatrach and Portugal's energy company Galp inked an agreement recently to extend Algerian gas exports to Portugal for 10 additional years, according to a statement released by Sonatrach.

According to the agreement, Algeria would supply the Portuguese market with 2.5 billion cubic meters of natural gas annually for one more decade. Algeria and Portugal signed a partnership agreement in 1994, which has been extended every 10 years, confirming Sonatrach's position as a major gas supplier to Portugal, according to the statement, as reported by Xinhua.

On the other hand, Sonatrach also inked an agreement with Italy's energy giant ENI to extend Algerian gas exports to Italy for another 10 years. That agreement with Italian energy giant on May 16.

Algeria produces 130 billion cubic meters of natural gas annually, of which 50 billion cubic meters is exported. This oil-rich country also caters for 14 percent of EU countries' natural gas needs.

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