Algeria Cuts Gas Supply to Morocco, Shifts Pipeline Route to Spain

Algeria, which has broken off diplomatic relations with Morocco, will cease to supply natural gas to the country via the Maghreb-Europe gas pipeline from November 1, three Algerian sources with direct knowledge of the matter (two government and one within Sonatrach) told the Reuters agency, adding that the GME of 13.5 billion cubic meters linking Algeria to Spain via Morocco would thus be abandoned in favor of the Medgaz submarine pipeline, with an annual capacity of 8 billion m³. The latter directly connects Algeria to Spain.

In the meantime, Algeria had taken certain measures to ensure the transport of the GME quantities via the Medgaz. In July, the president of the Algerian national energy company (Sonatrach), Tewfik Hakkar, and the president of the Spanish company Naturgy had formalized the agreement for the commissioning of the extension of Medgaz, the submarine gas pipeline between Algeria and Spain. "Even in the event of non-renewal of this contract which expires next October, Algeria will be able to supply Spain, but also respond to any additional demand from the Spanish market without any problem," Tewfik Hakkar reassured.