Spain Knew of Algeria’s Gas Pipeline Contract Termination Years in Advance, Raising Energy Supply Concerns

According to spglobal.com, Naturgy has been aware since July 2018 that the GME contract would likely not be renewed. This decision, finally made on October 30, continues to provoke reactions, particularly in Spain and Europe.

Since then, concern has been reigning in Spain, which fears that Algeria will be unable to supply it with gas on time. Despite Algeria’s assurances, the non-renewal of the GME transit contract is still causing concerns in Europe given the current tight gas market and high prices.

Jon Ganuza, Naturgy’s global control manager, said on November 10 after the company released its third-quarter results report that discussions are continuing to see if the pipeline contract could be extended. According to the manager, this would be "beneficial" for all parties and "create value for everyone."

He also stated that he remained in talks with Morocco and Algeria to obtain an exceptional extension of the Maghreb-Europe gas pipeline contract, which connects Europe through Morocco.