Algeria Prepared to Meet Spanish Gas Demand Amid Pipeline Dispute with Morocco

Even if Spanish demand for gas increases, Algeria will be able to meet it in the event that Morocco does not renew the concession contract for the Maghreb-Europe gas pipeline, says Toufik Hakkar, the CEO of Sonatrach. The leader, aware of the current tensions between Algeria and Morocco caused by the differences over the conflict in the Sahara, affirms that Algeria will not submit to any blackmail from Morocco.

To read: Morocco Threatens Gas Pipeline Renewal Amid Diplomatic Row with Spain and Algeria

The Spanish newspaper El Mundo announced a few weeks ago that King Mohammed VI would have instructed to stop the negotiations for the renewal of this contract. The negotiations are proceeding normally, other sources deny, specifying that they "notably concern the technical and commercial aspects of the contract". And to add: "You can’t stop a contract of this kind overnight".

To read: Negotiations to Resume for Maghreb-Europe Gas Pipeline Contract Renewal

The Maghreb-Europe gas pipeline allows Spain and Portugal to be supplied with gas from Algeria via Morocco. "Even if Morocco decided not to extend the concession and stop transiting gas through this infrastructure, the supply of Spain is assured," say experts who specify that currently, Medgaz, owned by Sonatrach (51%) and Naturgy (49%), is already transferring more gas than the Maghreb-Europe which only covers 15% of consumption in Spain.