Spanish utility Naturgy this week agreed to buy Abu Dhabi state investor Mubadala’s 42.09% stake in the 8bcm/y Medgaz gas pipeline which connects Algeria to Spain. The deal bumps Sonatrach’s stake by 8 percentage points to 51%, while Naturgy increasing its share by 34.05 percentage points to 49% for €445mn. The deal is expected to close by the end of March 2020.
Naturgy says the deal gives it joint control with Sonatrach over a “strategic asset.” Spain imported a record 7.8bcm/y through the undersea pipeline in 2018 (MEES, 22 March) and plans to increase its capacity by 25% to 10bcm/y are in motion. Naturgy says the expansion will cost €67mn and be operational in 2021. Spain also takes Algerian gas through the 11.5bcm/y Gaz Maghreb Pipeline which traverses Morocco. (CONTINUED - 170 WORDS)