Spain Boosts LNG Imports as Algeria Gas Supply Concerns Grow

In recent weeks, Spain has continued to strengthen its gas reserves. Enagás has already allocated 54 additional time slots to gas companies to increase the import capacity of liquefied natural gas (LNG), reports El Periódico. This is a "preventive action to strengthen the gas system and anticipate" any potential supply disruptions, Enagás officials say.

To read: Spain’s LNG Imports Surge to 69% Amid Algerian Pipeline Closure

"Spain’s gas supply is guaranteed. We have a regasification infrastructure that allows rapid access to liquefied natural gas by ship," Teresa Ribera, the Vice-President and Minister of Ecological Transition, said last week. Since the closure of the Maghreb-Europe pipeline at the end of October, Spain has imported nearly 70% of LNG by the end of December, compared to 47% during the same month of the previous year, according to Enagás data.

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Despite Algeria’s difficulty in meeting Spain’s gas demand, it remains Spain’s largest gas exporter in 2021, with 42% of the total, far ahead of the United States, Nigeria, Russia or Qatar. "It is clear that we are impacted by the evolution of gas prices at a time when there is not only a very significant increase in demand in Asian markets, but also major tensions with Russia, which remains the main supplier of natural gas for most European countries," Ribera stressed.

To read: Medgaz Pipeline Expansion to Boost Algeria-Spain Gas Supply

Spain is affected by the closure of the GME, a consequence of the breakdown of diplomatic relations between Algeria and Morocco. Algeria has stated that it will continue to supply Spain with gas via the Medgaz, a pipeline with a smaller capacity than the GME. But for now, the option that is saving Spain is the import of LNG.