Algeria-Spain Gas Pipeline Faces Flow Disruption, Raising Supply Concerns

Medgaz, the pipeline that directly connects Algeria to Spain, has reported a drop in flow rate since Tuesday. Algeria had reassured Spain that it would continue to supply it with gas via this pipeline, after the closure, at the end of October, of the Maghreb-Europe pipeline crossing Morocco. The drop in flow rate was detected in Almería, at the pipeline’s interconnection point, according to Ok Diario.

To read: Spain Awaits Decision on Crucial Algeria-Europe Gas Pipeline as Deadline Looms

In a report on stock developments as of Wednesday, November 24, the Enagás company confirmed that the gas arrival flow rate remained low for a 13-hour period. The flow rate remained at a very low level of 2,703 GWh between 6:00 and 19:00, the report noted, stressing that the situation was "critical". Despite this situation, Pedro Sánchez continues to claim that gas supply is guaranteed. According to experts, there is likely a shortage of gas at reasonable prices due to high market costs. This can cause disruptions at certain periods of increased gas demand if the acquisition quantity is very low.

To read: Spain’s Gas Supply in Jeopardy as Algeria Shifts Pipeline Routes

Furthermore, electricity companies have already warned of possible power outages in January, a month that will see low wind and solar power generation. To prevent this situation, the Spanish government has given instructions for a large quantity of liquefied gas to be imported from Algeria by ship. Nearly a month after the launch of this order, liquefied gas reserves are at 21.1%, a level lower than expected.

Algeria normally supplies 45% of the gas consumed in Spain. With the closure of the Maghreb-Europe pipeline, this rate has dropped significantly, as Medgaz has a lower production capacity of 8 million cubic meters per year. The government had planned to increase this capacity to 10 million cubic meters per year by December.