Algeria-Morocco Rift Disrupts Spain’s Gas Supply Amid Diplomatic Crisis

Relations between Morocco and Algeria, two Maghreb powers, have always been complicated and very tense due to Algeria’s support for the Polisario Front in the conflict in the Sahara. Tensions escalated this year with Algeria’s severing of diplomatic relations with Morocco, recalls EFE.

To read: Algeria Cuts Off Gas Pipeline to Europe Through Morocco Amid Diplomatic Tensions

In the wake of this, Algeria, thinking to harm Morocco, decided not to renew the GME concession contract, which expired on October 31 and is intended to supply Spain and Portugal with gas via Morocco. This decision has affected the kingdom, which received some $200 million per year in transit rights for this gas, which contributed 12% of its energy production.

To read: Algeria Halts Gas Pipeline to Spain, Morocco Prepared for Impact

But Spain is the one that has been the most shaken by this Algerian decision, as it depended on Algeria, which covered nearly half of its gas needs. Despite the closure of the GME, Algeria has continued to serve Spain via Medgaz, another pipeline directly linking the two countries, but whose capacity (8 billion cubic meters per year) is low compared to that of the GME (13 billion cubic meters per year).

To read: Algeria Cuts Gas Supply to Spain, Raising Energy Concerns in Europe

According to Mohamed Masbah, director of the Moroccan Institute for Policy Analysis (MIPA), cited by EFE, the closure of GME also affects Algeria, which is reduced to a single pipeline with Spain. "The pipeline is a symbolic expression of the rupture, but with it, self-mutilation occurs. Algiers is hurting itself to harm Rabat," he analyzes, adding that tensions are not about to subside with the normalization of relations between Morocco and Israel and the recent signing of a military agreement between the two countries.

To read: Morocco and Spain Seek Gas Supply Solutions as Algeria Pipeline Contract Nears Expiration

For the moment, "the mediation attempts initiated by Spain and some Gulf countries have failed, as they have no solution to impose on the two countries," notes the Moroccan expert, recalling that in early November, Algeria accused Morocco of having killed three Algerian truckers in a drone attack in the Sahara. Moreover, the two countries continue their arms races. Morocco has increased its military budget for 2022 by 6%, or 4% of its GDP, compared to 6% for Algeria.