A few days before the end of the contract, Algeria assures its commitment to comply with the contracts to supply natural gas to Spain

Argelia afronta el compromiso de suministrar de gas a España

REUTERS/LAMINE CHIKHI - Gas field in Algeria

The supply would be carried out through the "Medgaz" pipeline, which links the Algerian coast with Almeria.

The agreement to transport gas through the pipeline passing through Morocco began in 1990. Half of the gas consumed by Spain comes from Algeria, being its main supplier.

"We have reassured our Spanish partners and told them that we will fulfill our supply of natural gas in the quantities agreed under the contracts concluded between Sonatrach and Spanish companies," commented Mohamed Arkab, Algerian Minister of Energy, after meeting with Teresa Ribera, Spanish Third Vice-President and Minister for Ecological Transition and the Demographic Challenge.

Algerian soldiers stand guard at the Tiguentourine gas complex in In Amenas, about 1,600 km southeast of the capital.

However, although no details are known on whether the two parties have discussed the issue of price, this could imply an increase in the cost of the material for the Spanish, as the process of supplying the gas through the Medgaz entails additional expenses.

Spain was in a state of uncertainty after the Algerian government communicated the termination of the gas supply contract from the beginning of November, which is supplied through the gas pipeline that passes through Moroccan territory.

Likewise, another concern of the Spanish people is the maximum capacity of the gas pipeline connecting Algeria with Europe, which is estimated to have a capacity of 13.5 million cubic meters, while the Medgaz has 8.5 million cubic meters.

The gas pipeline linking Spain, Morocco and Algeria, which was established under an agreement signed between the parties concerned for a period of 25 years, could be shut down in October.

However, the Algerian government reaffirmed its commitment to provide the remaining amount, either by ships or by carrying out a two million cubic meter expansion of the pipeline. 

"We have promised that all these supplies are contractually guaranteed and we have assured our partner that we are ready to talk about supplementary volumes in order to supply all the additional quantities they need," the minister said.

"Not only has the total guarantee been made explicit with respect to supply, to the volumes of supply agreed today, but the openness, if necessary, to study when and how, in the event that Spain were to ask for an increase in that supply, this could materialize," Ribera added.

The two countries, Algeria and Morocco, have historically been at loggerheads over issues, among others, such as Western Sahara, and especially after Algeria accused the Moroccan capital, Rabat, of collaborating with the separatist organization "MAC". 

Moroccan and Algerian flags in Saidia, on the border between the two countries.

This has been aggravated since Algeria announced a break in diplomatic relations with Morocco for reasons it described as "dangerous", after accusing, also the capital, of attacking its national security and stability. 

As a result, Algeria plans to change its gas supply routes, which it transported to Europe via its Moroccan neighbor. 

Mohamed Arkab stressed "the importance of cooperation and strategic partnership with Spanish energy companies".

The Algerian minister also expressed Algeria's hope for the possibility of developing greater and more coherent cooperation between the two countries in the gas and electricity industries. 

Fourth Vice-President of the Government of Spain and Minister for Ecological Transition and the Demographic Challenge, Teresa Ribera

"We are very pleased about this excellent and special relationship between Algeria and Spain in the energy field and we continue to support these relations in the future through major projects of importance to the two countries," Arkab said.

Ribera announced that "This is not the only important aspect of Spain and Algeria's relationship in relation to energy. We have talked about many other issues, in which electricity, new renewable energy formulas, storage or hydrogen, or in its case the construction of an electric cable that allows the interconnection between the two continents may come to materialize over the next few years."

"We have also discussed future renewable energy projects, especially linking Algeria with Spain with a submarine power cable. We are very interested in electricity with the southern shores of Europe via Spain," the Algerian minister announced.
 

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