Morocco Explores Spanish LNG Option as Algeria Pipeline Deal Nears Expiry

"For Morocco, the pipeline is a tool for regional cooperation [...], we will not abandon it," said a senior Moroccan official who requested anonymity, adding that Morocco is in negotiations with Spain to use its LNG terminals to transport gas to Morocco via the pipeline.

"This LNG will not compete with the Spanish gas supply. It will be an additional purchase ordered by Morocco, which will pay the cost of transit through the Spanish terminals and the pipeline," he specified, adding that Morocco has also granted permits to gas importers in anticipation of the fact that Algeria will not renew the GME concession contract.

For his part, the CEO of the Algerian national oil and gas company (SONATRACH) said on Monday, in an interview with Algerian public television, that his company continues to honor its commitments and supply gas to its "historical customers" such as Spain and Italy.

After breaking off diplomatic relations with Morocco at the end of August, Algeria had hinted that it would not renew the concession contract for the Maghreb-Europe gas pipeline crossing Morocco and that it would increase the capacity of the Medgaz to 10 billion cubic meters by December to continue to supply Spain. But the Algerian president, Abelmadjid Tebboune, recently stated that no final decision had been made on the Maghreb-Europe gas pipeline.