Algerian hydrocarbon giant Sonatrach provided more than 40% of the natural gas imported by Spain in 2021.
Algeria’s Energy Ministry on Wednesday threatened to cut the gas supply deal with Spain if Spain piped the gas “to a third destination”, amid diplomatic tensions with Madrid and Morocco over Western Sahara. Algerian hydrocarbon giant Sonatrach provided more than 40% of Spain’s imported natural gas in 2021, most of which enters Spain via the 10 billion cubic meter per year undersea gas pipeline Medgaz.
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Another part of the Algerian gas reached Spain by October via the Maghreb Europe Gas Pipeline (GME), which runs through Morocco. But Algiers shut it down after cutting off diplomatic ties with Rabat in August, thus depriving Morocco of the Algerian gas flowing through its territory. According to a press release from the Algerian Ministry of Energy and Mines, Minister Mohamed Arkab “was informed today (Wednesday) by electronic message from his Spanish counterpart, Mrs. Teresa Ribera, of Spain’s decision to authorize the operation of the reverse flow of the Maghreb Europe Gas Pipeline” and that “this operation will take place today or tomorrow”.
The press release didn’t name the country that would benefit from this “reverse flow” operation of the pipeline, but the Spanish government announced in February that it would help Rabat “guarantee its energy security” by allowing it to do so to transport gas through the GME after Algiers stopped supplying it. Any onward transmission of a quantity of Algerian natural gas delivered to Spain, the destination of which is none other than that provided for in the contracts, will be considered a breach of contractual obligations and could consequently result in a breach of the contract binding Sonatrach to its Spanish customers,” warned the Algerian ministry.
The warning comes amid diplomatic tensions between Algiers and Madrid over the issue of Western Sahara, a former Spanish colony now considered a “non-autonomous territory” by the UN and which has opposed Morocco’s Polisario Front for decades. Spain, which is heavily dependent on Algeria for its gas supplies, radically changed its position on the thorny issue on March 18, publicly backing the Moroccan autonomy project and incurring the wrath of Algiers, the Polisario’s mainstay.
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