XM does not provide services to residents of the United States of America.

Algeria to cancel gas deliveries to Naturgy if shares sold to another company, source says

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>UPDATE 2-Algeria to cancel gas deliveries to Naturgy if shares sold to another company, source says</title></head><body>

Adds Naturgy comments, Spanish energy ministry declining to comment, details

ALGIERS/MADRID, May 6 (Reuters) -Algeria will cancel its deliveries of gas to Naturgy NTGY.MC if the Spanish firm's shares are sold to another company, a source familiar with the matter told Reuters.

The source did not name the firm that could buy Naturgy shares, but Abu Dhabi's TAQA TAQA.AD said last month it was in discussions with Naturgy's three largest shareholders which could lead to a possible full takeover bid for the largest natural gas firm in Spain.

Naturgy has a stake in a key gas pipeline between Spain and Algeria, as well as key contracts with Algeria's Sonatrach, which supplies gas to Spain through a pipeline. Naturgy also has a long-term contract to import some 3 billion cubic metres (bcm) of Russian liquefied natural gas every year.

"Naturgy has signed take or pay supply contracts until 2032 with Algeria," a company spokesperson told Reuters.

"Naturgy is not part of any negotiation on the company's shareholding, as was made clear in the relevant facts published at the time."

A spokesperson for Spain's energy ministry declined to comment.

TAQA said last month it was in talks with private equity firms CVC and GIP, each owning more than 20% of Naturgy, to buy their stakes.

TAQA also said it was talking to Naturgy's largest shareholder, Criteria, which owns a 26.7% stake about a possible partnership agreement.

Algeria was Spain's largest gas supplier in the first three months of the year, according to data from Spanish gas grid operator Enagas. It made up roughly a third of total gas imports. The bulk of such supplies comes through pipeline.

Reporting by Lamine Chikhi, Joan Faus and Pietro Lombardi, editing by Deepa Babington


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.