Algeria extends gas contract with Italy for 10 years

ALGIERS, June 26 (Xinhua) -- Algeria's energy giant Sonatrach and Italy's ENEL group on Wednesday signed an agreement to extend a gas export contract to Italy for 10 more years.

Sonatrach said in a statement that the deal consolidates the historic partnership that links the two sides since 1991.

On June 12, Sonatrach and Portuguese energy company Galp signed an agreement to extend for 10 years the Algerian gas exports to Portugal.

Less than a month earlier, Sonatrach also signed a similar agreement with the Italian energy giant ENI.

Algeria annually produces 130 billion cubic meters of natural gas with 50 billion for export.

The oil-rich country also secures 14 percent of the European Union countries' natural gas needs.