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Spain's Repsol signs gas supply contract with Gas Natural

Fri, 26th Jul 2013 12:38

MADRID, July 26 (Reuters) - Spanish utility Gas NaturalFenosa has signed two contracts to sell 2 billion cubicmetres (bcm) of natural gas a year and 1 bcm of liquefiednatural gas (LNG) a year to Spanish oil company Repsol,the utility firm said on Friday.

The gas supply was to fuel the oil company's refineryoperations, most of which are in Spain, and was the renewal ofan existing sales contract, a Repsol spokesman said.

The natural gas contract is valid for 2015 to 2018 while theLNG contract, which Gas Natural said was expected to begin in2017, was for 20 years.

The gas company did not give any financial details of thecontracts.

Repsol holds 30 percent of Gas Natural but said on Thursdaythat holding the stake made little sense after an agreement tosell a large part of its natural gas liquefaction plans to RoyalDutch Shell.

Repsol has taken advantage of its stake holding in the gasgroup for business synergies through the gas produced at theplants, though the contract on Friday is independent of the dealto sell the plants, the spokesman said.

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