Algeria Warns Spain: Gas Contracts at Risk if Morocco Receives Algerian Supply

In the midst of a diplomatic crisis with Spain after its change of position on the Sahara, Algeria has warned the Spanish authorities that it would not hesitate to break its gas contracts if it were to find that its gas was being resold to Morocco, reports El Periodico.

The third vice-president and Minister of Ecological Transition, Teresa Ribera, confirmed on Wednesday the imminent reopening, in the opposite direction, of the Maghreb-Europe gas pipeline crossing Morocco, closed since October by Algeria, in order to transport gas to the kingdom. "Spain has responded favorably to Morocco, which has requested support to guarantee its energy security, on the basis of commercial relations, as it would with any other partner or neighbor," say Spanish government sources.

To read: Algeria Threatens Gas Supply to Spain Amid Western Sahara Dispute

The Spanish government reassures that Algerian gas will not be resold to Morocco, stressing that Spain’s role will be limited to transforming in its regasification plants the liquefied natural gas (LNG) purchased by Morocco on the international market and transporting it to the kingdom via the GME. "Under no circumstances will the gas acquired by Morocco be of Algerian origin," sources from the Ministry of Ecological Transition assure, specifying that Algeria is informed of the activation of this mechanism.

Algeria closed the Maghreb-Europe gas pipeline at the end of October due to tensions with Morocco. Spain’s main supplier of gas, Algeria failed to meet Spain’s demand after this decision, as the Medgaz, the pipeline directly linking the two countries, has a smaller capacity than the GME. Since last January, the United States has become Spain’s largest gas supplier, ahead of Algeria, with 43% of total imports in March.