Algeria threatens to cut gas supply to Spain if sent to a third country

Algeria warned Spain that any diversion of exported gas “whose destination is none other than that provided for in the contract” will entail the breach of the contract. This was stated by the Ministry of Energy and Mines. Algeria is the main supplier of gas to Spain.

Minister Mohaned Arkab points out that he was informed “by electronic message” by his Spanish counterpart, Teresa Ribera, of Spain’s decision to authorize the exploitation, in reverse flow, of the Maghreb Europe Pipeline (GME).

The Maghreb Europe, which supplied Algerian gas to Spain and Portugal was closed last October when the 25-year contract expired, in full tension between Algeria and Morocco.

“The quantities of Algerian natural gas delivered to Spain, the destination of which is not other than that provided for in the contracts, shall be regarded as a breach of the contractual commitments, and therefore could lead to a breach of the contract between Sonatrach and its Spanish customers,” warned the Algerian government.

Spain has denied that it will sell natural gas from Algeria to Morocco. They explain that the country has merely responded to the request for support expressed by its partner Morocco to ensure its energy security on the basis of trade relations between the two countries.

Under this agreement, Morocco will be able to purchase liquefied natural gas on international markets. However, in no case will the gas sold have Algerian origin.

The activation of this mechanism has been discussed with Algeria in recent months and has been communicated to the Algerian Government on Wednesday.