Algeria’s state-owned Sonatrach and Spanish utility Gas Natural Fenosa have resolved a long-standing dispute over gas pricing, according to  Algeria’s official news agency APS.

Sonatrach is expected to take a small stake in the Spanish firm, which in turn will gain shares in the Medgaz pipeline.

The companies issued a joint statement vowing to work together in future: “This agreement constitutes an important milestone for the parties, which marks the start of a new strategic relationship.”

Sonatrach chief executive officer Nur al-Din Cherouati and Gas Natural president Salvador Gabarro Serra signed an agreement outlining the principles of collaboration between the two firms on 14 June.