Spain’s Iberdrola sells stake in gas pipeline operator Medgaz

Spanish utility major Iberdrola SA (MCE:IBE) on Friday unveiled a EUR146m (USD193.4m) deal to sell its 20% stake in gas pipeline operator Medgaz SA to Fluxys Belgium NV (EBR:FLUX).

Medgaz was set up in 2001 to design, build and run a pipeline that connects Algeria to Spain. Other shareholders include Spanish oil group Cepsa and Algeria’s Sonatrach, which were its initial founders.

Spain-based Medgaz operates a deep water gas pipeline from Algeria to Europe through Spain, the first such project built at 2,000 metres in the Mediterranean Sea.

The pipeline is to supply gas from Beni Saf on the Algerian coast to Almeria in Andalusia region of Spain, according to Medgaz’ website