Eric Watkins
Senior Correspondent
LOS ANGELES, Aug. 6 -- EDP Energias de Portugal SA in a public filing said a natural gas and power generation partnership with Algeria's state-run Sonatrach will be in place by Oct. 31. The partnership will jointly supply and market gas in Portugal and Spain and partner in combined-cycle gas turbine (CCGT) plants.
Sonatrach, keen to increase natural gas sales to Europe, will provide as much as 2 billion cu m/year of gas to EDP while taking a 25% minimum stake in the gas supply projects. It also will have one representative on EDP's board when the deal is formalized, EDP said.
Other talks are said to include EDP's possible participation in gas plants in Algeria. Earlier this year Algeria announced a tender of about €2.5 billion for 5 natural gas plants and an underwater cable to Spain. EDP, Iberdrola SA, Enel SPA, and Endesa SA are interested in the bidding.
Contact Eric Watkins at [email protected].