Medgaz Pipeline Expansion to Boost Algeria-Spain Gas Supply

Medgaz is a gas pipeline that directly connects Algeria to Spain and allows one to supply the other with natural gas. Since the closure of the GME, the infrastructure has not been able to meet Spain’s expectations. This month of January, its capacity should increase from 8 to 10 billion cubic meters per year, compared to 13 billion cubic meters per year for the GME.

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Medgaz is owned by the Algerian company Sonatrach (51%) and the multinational Naturgy (49%). The two partners agreed last July to invest around 73 million euros to carry out extension work on this gas pipeline, which was completed last December, in accordance with the established schedule. Pressure tests have already been carried out and Medgaz should start operating at full capacity this month of January.

To read: Spain Lawmakers Probe Gas Supply Contingency Plans Amid Algeria Concerns

In an interview with Ai24News, Toufik Hakkar, the CEO of Sonatrach, said that the fourth turbocompressor of this pipeline should be commissioned this month to ensure the supply of the Spanish and Portuguese markets with Algerian gas in sufficient quantities.

At the end of December, Spain imported 68.8% of liquefied natural gas (LNG) compared to 47.6% during the same period in 2020, according to Enagás data.