Spain threatened by Algeria to cut of gas in amid disputes with Morocco

Pressure gauges at the Enagas SA storage and distribution hub at the Port of Barcelona in Barcelona, Spain, on Tuesday, March 29, 2022. (Angel Garcia/Bloomberg , Bloomberg)

Algeria threatens to cut off natural gas supplies to Spain, escalating an apparent diplomatic spat with Morocco.

Algeria's energy ministry said late Wednesday that it might terminate supply contracts with Spain if the European country sells Algerian gas to other countries. Spain's Energy Minister Teresa Ribera informed her Algerian counterpart that Madrid would begin delivering gas to Morocco via the Maghreb-European pipeline.

According to a Spanish official statement, Spain reviewed the pipeline's use with Algeria in recent months and announced its decision on Wednesday.

Algeria is unsure if it will carry out its threat if Spain transfers non-Algerian gas to Morocco. Morocco's energy minister, Leila Benali, stated in a February interview that the country wishes to purchase liquefied natural gas and transport it to Spanish re-gasification installations. It would subsequently be sent to Morocco by MEG, she explained.

Morocco's energy minister did not reply immediately to a request for comment.

This conflict adds another layer of risk to Europe's energy security. Russia cut off gas supplies to Poland and Bulgaria on Wednesday in retaliation for sanctions imposed over its invasion of Ukraine. Algeria supplies around 8% of Europe's gas imports, making it the third-largest supplier behind Russia and Norway.

Normally, gas flows from Algeria to Spain via Morocco via the Maghreb-European pipeline, abbreviated MEG. However, Algeria ceased transferring fuel through it late last year when it severed diplomatic ties with Morocco over the Western Sahara dispute. Algeria summoned its ambassador to Spain last month after Madrid abandoned its long-standing neutrality toward the territory and endorsed Morocco's ambitions for limited autonomy.

A Morocco-Spain segment of the MEG line is owned by Moroccan, Spanish, and Portuguese firms. According to Morocco, they can reverse the flows without Algeria's consent.

Spain continues to get Algerian gas via the Medgaz pipeline, which does not pass via Morocco, and as LNG. Algeria also has a connection to Italy via a gas pipeline.

Publish : 2022-04-28 14:56:00

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