Algeria wants to double gas prices for Spain

Algerian state-owned Sonatrach, which has been revising its long-term agreement with Spain’s Naturgy to supply natural gas to the kingdom for more than a year, is aiming to more than double gas prices for Spain.

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To date, the prices for Algerian gas are formed in accordance with the prices for Brent crude oil. As of 13.54 Moscow time, the price of November futures for Brent crude grew by 0.03% to $92.03 per barrel.

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However, now Algeria is trying to start selling its gas on the index of the largest European hub TTF, which is significantly influenced by Russian gas prices, the newspaper writes. As of 14:17 Moscow time, the price of November futures for TTF gas is 199.49 euros per MWh, which is more than twice the Brent index.

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Algeria’s intention to switch to the TTF comes amid EU efforts to reform the way gas prices are set and reduce the impact of the TTF on numbers that the European Commission considers highly volatile, opaque and speculative.