Algeria Halts Gas Pipeline Through Morocco, Commits to Spain’s Supply via Medgaz

Algeria, which announced the severing of its diplomatic relations with the kingdom last Tuesday, has decided to abandon the Maghreb-Europe gas pipeline (GME), whose contract expires on October 31. Consequently, the contract for this gas pipeline will not be renewed.

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During the meeting between Mohamed Arkab and Fernando Moran, the Algerian Minister of Energy "highlighted the recent projects initiated, such as the project to expand the capacity of the Medgaz gas pipeline directly connecting Algeria to Spain," a statement from the ministry said. He also reassured his guest of Algeria’s ability to meet the "increasingly growing" demand for gas in the European markets in general and the Spanish market in particular. Mohamed Arkab also discussed the new hydrocarbons law and its importance for the partnership. In this regard, he invited Spanish companies to further strengthen their presence in Algeria in order to benefit from the advantages offered by the new legislation.

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Algeria had in the meantime taken certain measures to ensure the transport of GME quantities via 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 meet any additional demand from the Spanish market without any problem," Tewfik Hakkar had reassured.