Middle East & Africa: Price trends
Contract renegotiation between Sonatrach and Eni will favour pipeline gas exports from Algeria to Italy in the coming months.
Sonatrach and Eni have negotiated a one-year contract that started in October 2016. The salient feature of the contract is that the price is aligned with Italy’s PSV hub, boosting the appeal of Algerian gas for customers in Italy. The contract price was previously oil-indexed, which resulted in Eni reducing its uptake of pipeline gas from Algeria during 2013 and 2014.