(MENAFN) According to people acquainted with the situation, Algeria's national oil and gas firm Sonatrach is discussing long-term contracts with EU importers in order to capitalize on rising energy costs.
As per reports, the business is evaluating a number of possibilities, including a partial connection to spot pricing in contracts that have traditionally been linked to the price of Brent oil.
Concerns over Russian gas supplies to Europe have propelled benchmark Dutch TTF futures up more than 80% and 110 percent this year, according to Reuters data. Brent crude rose by 55% within the same time period.
Meanwhile, as a result of the conflict in Ukraine and Western sanctions against Moscow, Algeria's role as a gas supplier to Italy, Spain, and other southern European countries has grown.
According to a news source, Algeria and other sellers are looking for methods to reclaim money lost due to long-term contracts relying on a single pricing index.
“Sonatrach has very strong bargaining power because it has got the gas, and realizes that Europe needs it,” one of the outlets stated, noting that “buyers now realize they are being stuck between a rock and a hard place.”
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