Business & Finance

Enel's long-term gas supply deals with Algeria start expiring

Published November 21, 2017 Updated November 21, 2017 10:29pm

"Our intention is not to cancel them but substitute them with different contracts which are not oil-linked anymore," Chief Executive Francesco Starace said during a strategy presentation.

European gas importers have significantly diluted oil-indexation levels in their gas supply deals after incurring heavy losses when oil prices were high.

Starace said more long-term gas supply deals signed 20-25 years ago will come up for renegotiation over the next five years.

He declined to disclose the size and value of the Algerian contracts under review.

Copyright Reuters, 2017