The Algerian Minister of Energy warns that any change in the destination of the gas supply would imply a violation of the agreement

Argelia amenaza a España con revocar su contrato del gas

AFP/ RYAD KRAMDI - File photo, Algerian soldiers stand guard at the Tiguentourine gas complex in In Amenas, some 1,600 kilometres southeast of the capital.

Algeria's gas supply to Spain is still in the balance. After the Spanish government recognised Moroccan sovereignty over Western Sahara, Algiers has distanced itself from Madrid at a time when Europe is going through a major energy crisis.

Despite Algeria's assurance of gas supplies to Spain through the Megdaz pipeline, the Algerian government has once again doubled down on its threat, stating that they will not hesitate to terminate the signed contract if the Spanish government uses the gas for any purpose other than that agreed, namely to redirect it to Morocco.

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According to a communiqué issued by the Algerian Ministry of Energy and Mines, "any shipment of Algerian natural gas delivered to Spain, whose destination is not the one foreseen in the contracts, will be considered as a breach of contractual commitments", which would lead to "the termination of the contract that links Sonatrach with its Spanish customers". 

According to reports from Algeria, this statement was made after the Minister of Energy and Mines, Mohamed Arkab, was informed by an email sent by his Spanish counterpart, Teresa Ribera, of "Spain's decision to authorise the operation, in reverse flow, of the Maghreb-Europe Gas Pipeline (GME)".

The Algerian government's response was not long in coming, stating that "the quantities of Algerian natural gas delivered to Spain, whose destination is not other than that foreseen in the contracts" will be considered a breach of contract. 

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However, Ribera's Ministry has indicated "with total transparency" that "Morocco could acquire liquefied natural gas on international markets" as well as "use the Maghreb pipeline to reach its territory". Even so, they have assured that "in no case will the gas acquired by Morocco come from Algeria".

Closure of the GME pipeline

After Algeria decided to unilaterally break off diplomatic relations with Morocco last August due to "an accumulation of disagreements", the distances between the neighbouring countries have become more than noticeable.

One of the consequences of this abrupt rupture was the closure of the GME pipeline on 1 November. This pipeline supplied gas to Spain via Morocco. Its closure, in response, affected the gas supply to three Moroccan power plants. 

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This closure also affected the supply to Spain itself, despite Algeria's assurances that the stoppage would not affect the Spanish supply. Algeria's strategic position and its wealth of gas are two key factors for Spain. Last year, 45% of gas imports came from Algeria, a significant figure that demonstrates Spain's continued dependence on Algerian gas.

 Italy, Algeria's new partner

This position is now under threat after Italy has redirected its gas supply towards Algeria, after wanting to reduce its dependence on Russian gas as a result of Russia's invasion of Ukraine. Before the invasion, Italy's dependence on Moscow accounted for 43% of its total international purchases.

The rapprochement between Italy and Algeria has led to a strategic agreement that involves increasing gas imports, referring to an increase in the volume of gas of up to 9 billion additional cubic metres. In return, the Italian government has pledged to participate in joint projects involving "the development of renewable energies and green hydrogen". 

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These developments come at a time when Morocco and Nigeria are gradually working to ensure that the gas pipeline agreed between the two parties sees the light of day once and for all. According to reports, this pipeline could also supply gas to Spain and would also become the longest marine gas pipeline with a length of some 7,000 kilometres. 

According to a statement released by Australia's Worley, also known as the African-Atlantic pipeline "will help boost local industries and economies by providing a reliable and sustainable source of energy. It will also support industrial development and create employment opportunities".

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Spain acts with caution 

For his part, Foreign Minister José Manuel Albares indicated less than a week ago that "Algeria is a solid partner", known for its "scrupulous compliance" with gas agreements, and that he has "not the slightest doubt" that it will do the same with Spain.

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However, the distance between Madrid and Algiers continues to widen. Just a few days ago, Algerian President Abdelmadjid Tebboune declared that the Spanish government of Pedro Sánchez had 'broken the whole course' of relations between Spain and Algeria after recognising Moroccan sovereignty over Western Sahara as the 'most serious, realistic and credible' basis. 

The gas crisis deepens. Spain will continue to rely on Algerian supplies for the time being, in a convulsive context that does not guarantee any permanent solution. Algeria continues to threaten Spain, while the latter, for its part, calls Tebboune's statements a "sterile polemic".