Repsol-YPF to supply gas to Gas Natural

Spanish oil group Repsol-YPF has signed a two-part agreement with Spanish gas group Gas Natural as part of which the oil company will supply the gas group with 42,000 cm of gas over a period of 20 years, a contract worth an estimated $ 5 bn.
With the Spanish oil group and the gas group currently locked in a head-on confrontation over the gas group's takeover bid on Spanish power group Iberdrola, the move is a symbolic step closer towards a rapprochement between Spanish savings bank La Caixa, largest shareholder in Gas Natural, and Repsol, which owns an 18 % stake.

The second part of the agreement concerns the sale by Repsol-YPF and UK counterpart BP of the combined-cycle power station project in Cartagena to Gas Natural for an undisclosed sum, although it is thought to be a small part of the EUR 600 mm that will be invested in it.