Algeria’s Gas Pipeline Decision Sparks Concerns for Spain and Morocco’s Energy Future

According to several experts, it is for political reasons that underlie this option of Algeria aimed at harming the interests of Morocco. However, this choice will be costly for the three countries, says EFE. The Maghreb-Europe gas pipeline is a conduit more than 1,400 kilometers long that crosses Morocco over about 540 kilometers, passes through Gibraltar in an underwater section of about 45 kilometers to reach Cadiz. An average of 10,000 million cubic meters of gas passes through it annually towards the Iberian peninsula. At the same time, there is Medgaz, which was commissioned in 2010, with a capacity of 8,000 million cubic meters, over a length of more than 750 kilometers and which directly connects Algeria to Spain (Almería). Here, Algeria has announced its intention to increase its capacity by 25% to meet Spain’s demand.

Citing experts, EFE reports that Morocco risks facing a shortage if it lacks alternatives in the immediate future, since it is almost exclusively dependent on Algeria for its natural gas needs. One solution for Morocco, if the GME contract that expires on October 31 is not renewed, is to reverse the direction of the pipeline that connects Morocco to Spain in order to allow Spain to supply the kingdom with natural gas from other suppliers, advises analyst Gonzalo Escribano, director of the Energy and Climate Program at the Elcano Royal Institute.

However, negotiation with Algeria is the best option, he recommends to Spain, advocating a rather gradual closure of the GME, to find alternatives and ensure the effectiveness of Medgaz. But the possible cut-off of the GME "will put an end to the opportunity to advance economic integration" in this Mediterranean region, warns Escribano.