Algeria-Morocco Gas Pipeline Dispute Threatens Spain’s Energy Supply

Spain, being prudent, has taken steps to avoid any disruption in the natural gas supply from Algeria in the event of non-renewal of the contract between that country and Morocco for the operation of the Maghreb-Europe gas pipeline, indicates a source to El Confidencial Digital. 1,400 kilometers long, this pipeline operated for 25 years from Hassi R’mel, allows Spain and Portugal to be supplied with gas via Morocco.

"Spain has managed to settle with Algeria a possible supply problem, in case of an escalation of reprisals against Algeria by Morocco," assures the same source, indicating that the alternative found will be to fall back on the Medgaz pipeline, owned by Sonatrach (51%) and Naturgy (49%). Thus, Algeria will retain its position as the main gas supplier to Spain, because it "has two pipelines connecting the two countries, which makes transportation much cheaper," explains El Confidencial.

According to the Spanish authorities, "the conflict between Madrid and Rabat has complicated this renewal," reports the publication, which reports that the latter have obtained assurances from the Algerian side, particularly from Sonatrach, for a regular and sufficient supply of gas to avoid any price spike as was the case last winter. The responsibility for this situation lay with Sonatrach, which "was selling the gas it was supposed to supply to Spain at a higher price to China or Japan, taking advantage of the fact that they were also experiencing a major cold spell at the time," diplomatic sources said.

Moreover, Morocco will also be affected by a decision by Algeria not to renew the contract for the Maghreb-Europe gas pipeline. This situation would force it to buy nearly half of its gas consumption on a market indexed to Brent, at a price that continues to rise.