During 2019, Galp and Sonatrach entered into a new agreement that will allow Galp to purchase up to 2.5 bcm of NG per year for a period of 10 years. Early in 2020, Galp signed a sale and purchase agreement (SPA) with Nigeria LNG Limited to ensure the sourcing of 1 mtpa of LNG for 10 years.
Galp imports natural gas destined for the Iberian market through:
- Al Andalus pipeline (Spain) - Connects Tarifa to Cordoba;
- Extremadura pipeline (Spain) - Córdoba to Campo Maior;
- Sines - Sines LNG regasification terminal.
The international gas pipeline linking Portugal and Spain transports contracted natural gas from Sonatrach, in Algeria, which enters Spain through the Europe Maghreb Pipeline (EMPL) pipeline.
The Sines LNG regasification terminal receives LNG vessels purchased mainly from NLNG in Nigeria.
Galp carries on its NG/LNG trading activity on the international market and continues to strengthen its position in the network trading activity in European natural gas hubs, namely in Spain, France and in the Netherlands.
Following the end of the last structured LNG contract in the third quarter of 2018, LNG trading became more opportunistic. Nevertheless, network trading should continue to gain relevance.
Trading volumes (mm3):
- 2018 - 2,875 mm3
- 2019 - 2,937 mm3