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Algeria takes majority Medgaz stake to secure Spanish market
Concerns are rising about Algeria’s ability to finance major projects from its fast-diminishing foreign reserves, but state energy giant Sonatrach continues to make strategic investments, on 30 May completing the purchase of 8.04% of the Medgaz pipeline company’s equity. The purchase from Abu Dhabi state investment fund Mubadala gives Sonatrach a 51% majority stake in the 8.2bcm/yr pipeline running to Spain, which started operation in 2011 and is slated for further expansion, market conditions permitting.
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