Algeria threatens to terminate its gas contract with Spain

by time news

The Algerian hydrocarbon giant Sonatrach supplied in 2021 more than 40% of the natural gas imported by Spain.

The Algerian Ministry of Energy threatened Wednesday to break the contract to supply gas to Spain if the latter were to deliver it “to a third destination”, in a context of diplomatic tensions with Madrid and Morocco around Western Sahara. The Algerian hydrocarbon giant Sonatrach supplied more than 40% of the natural gas imported by Spain in 2021, most of which reaches it through the Medgaz submarine gas pipeline, with a capacity of 10 billion cubic meters per year. .

Another part of the Algerian gas arrived until October in Spain through the Maghreb Europe Gas Pipeline (GME) passing through Morocco. But Algiers closed it after the rupture in August of its diplomatic relations with Rabat, thus depriving Morocco of the Algerian gas which passed through its territory. According to a press release from the Algerian Ministry of Energy and Mines, Minister Mohamed Arkab has been informed “this day (Wednesday) by e-mail, by his Spanish counterpart, Mrs. Teresa Ribera, of Spain’s decision to authorize the operation, in reverse flow, of the Maghreb Europe Gas Pipeline” and “This operation will take place today or tomorrow”.

The press release did not specify the name of the country that would benefit from this operation of the pipeline in “reverse flow” but the Spanish government had announced in February that it was going to help Rabat “guaranteeing its energy security” by allowing it to pipe gas through the GME after Algiers stopped supplying it. Any delivery of “quantity of Algerian natural gas delivered to Spain, whose destination is none other than that provided for in the contracts, will be considered as a breach of the contractual commitments, and consequently, could lead to the breach of the contract binding Sonatrach to its Spanish customers”, warned the Algerian ministry.

This warning comes in the context of diplomatic tensions between Algiers and Madrid over the issue of Western Sahara, a former Spanish colony now considered a “non-self-governing territory” by the UN and which for decades has pitted Morocco against the Sahrawi separatists of the Polisario Front. Spain, very dependent on Algeria for its gas supplies, made a radical change of position on this sensitive issue on March 18, publicly supporting the Moroccan autonomy project and arousing the anger of Algiers, main support of the Polisario.


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