Algeria-Morocco Tensions Threaten Future of Key European Gas Pipeline

"Morocco’s willingness to maintain this export route has been clearly and consistently affirmed at all levels for more than three years," said Amina Benkhadra, Director General of the National Office of Hydrocarbons and Mines (ONHYM) in an interview with MAP. A statement that put an end to rumors that Morocco had decided to prevent the supply of Spain at the end of the contract.

Fearing an unfavorable decision by the kingdom, Algeria has 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 officially formalized the agreement for the commissioning of the Medgaz extension, 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 reassured.

Algeria has not yet given its position on the renewal of the contract. "Given the results of the High Security Council (HCS) meeting on Morocco, it is difficult to believe in a renewal of the contract for this gas pipeline," declares an Algerian oil expert to TSA. Moreover, the philosophy behind the GME is drowned out due to the diplomatic crisis between the two neighboring countries. "The Maghreb-Europe gas pipeline was designed by Algeria as a commitment on its part in favor of the construction of the Greater Maghreb, recalls the Algerian expert. It could have been laid directly under the Mediterranean, but Algeria preferred to transit through Morocco to allow this country to benefit from this project".