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Algeria Starts Selling Gas Directly to Spanish Consumers

05-06-2008

Sonatrach, Algeria's state-owned energy group, began selling natural gas directly to consumers in Spain, bypassing distributors such as Gas Natural SDG SA.

Sonatrach Gas Comercializadora, the company's Spanish unit, began supplying utility Hidrocantabrico Energia, the Algiers- based company said in a statement on its Web site.

Sonatrach said three years ago that it plans to generate one-third of its sales outside Algeria by 2015, up from 5 percent now. It seeks to sell gas directly to homes and businesses in Italy, France and Spain, without going through distributors like Eni Spa, Gaz de France SA and Gas Natural.

Algerian Oil Minister Chakib Khelil last year said Sonatrach will be able to sell gas cheaper in these countries than competing distribution companies.