Sonatrach and Spain’s Naturgy have agreed to buy Abu Dhabi sovereign wealth fund Mubadala’s 42.09% stake in the Medgaz pipeline between Algeria and Spain. The transaction will mean that Sonatrach has 51% and Naturgy 49% of the pipeline, with a shareholder agreement giving them joint control. Sonatrach is already Spain’s biggest gas supplier by volume and Naturgy’s fourth largest shareholder with a 4% stake. A €67m ($75m) expansion of the Medgaz pipeline to increase capacity by 2bcm to 10bcm is due to be operational in 2021.
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