The two companies continue to negotiate, within the framework of the contractual clauses, the prices applicable from January 1, 2023 The president of Naturgy, Francisco Reynés, assured that the negotiations “are progressing very well” and “soon” there would be “good news” Although he stressed that this “good news will not be complete, since prices are logically going to rise” According to the company reported to the National Securities Market Commission (CNMV), the agreements establish the new price that will be applied retroactively for volumes supplied until the end of 2022 and that, as established in the contracts between Sonatrach and Naturgy for price revisions, takes into account market conditions. Thus, the energy company chaired by Francisco Reynés indicated that the two companies continue negotiating within the framework of the contractual clauses the prices applicable from January 1, 2023. The agreements signed this Thursday have been approved by the board of directors of N aturgy and are subject to ratification by the highest Algerian government authorities. This very morning, in an informative meeting organized by CEOE-Cepyme, Reynés himself has already assured that the negotiations with Sonatrach for the revision of the natural gas supply contract with Algeria “they are advancing very well” and “soon” there would be “good news”, although he stressed that this “good news will not be complete, since prices are logically going to rise”. However, he stressed that the price revision would not be so high as “the exorbitant figures that have been said in some forums”. Naturgy had been carrying out this open review all year, since the previous one took place in 2020 with market prices around 20 euros per megawatt hour (MWh), while natural gas is currently trading at around 180 euros/MWh. Contracts until 2030The contracts currently in force between Naturgy and Sonatrach were signed more than 20 years ago with a validity until 2030 for an annual volume of around 5 bcm (billions of cubic meters) and imply firm volume commitments, both for supply to Sonatrach, such as the forced withdrawal of gas for Naturgy via ‘take or pay’ clauses (which oblige to pay even if the gas is renounced). Both companies are two of the oldest commercial partners in the supply of gas to Europe, since they signed their first contract in 1965, two years after the creation of Sonatrach.