Sonatrach and Engie reached an “agreement in Algiers regarding the gas contract through the Medgaz” pipeline, the Algerian company said in a statement.

“Both parties have agreed to take into account the market conditions to revise the gas... price applicable over a period of three years,” the statement added.

The price agreed to between the two parties was not disclosed.

Algeria is Africa's biggest gas exporter and supplies around 11% of the natural gas consumed in Europe.

Gas prices have soared globally since Russia's invasion of Ukraine and resultant sanctions imposed on Moscow.

Algeria's gas has been sought by European countries trying to diversify supplies away from Russia. But Algeria has become embroiled in a diplomatic crisis with Spain, the destination of much of its gas, sparking fears it will try to raise prices on supplies to Madrid.

Sonatrach CEO Toufik Hakkar had said that negotiations were at an “advanced” stage to adjust agreements with major clients to factor in the recent market upside.