Algiers has reportedly denied the US’s request to increase the flow of gas to Europe via the GME pipeline, according to a new UpStream report.
During her visit to Algeria, Deputy Secretary of State Wendy Sherman, expressed her country’s wish to see an increase in gas supply to Europe, as the old continent grapples with the loss of its Russian supply.
The Biden administration has been working with European allies to find additional natural gas supplies from North Africa, the Middle East, Central Asia, and the US since January.
The GME pipeline, which passes through Morocco, has been closed since October 2021 on the unilateral decision of Algiers and has limited the supplies that Algeria can provide to Spain, in light of the Russia-Ukraine conflict.
According to an analysis from UpStream, the reopening of this pipeline remains “the only solution to meet the urgent need of Europe following the Russian-Ukrainian conflict.”
Because of the sanctions on Russian gas, which covered 20% of world demand, gas prices have increased in international markets, making the continent more dependable on Algerian gas, unable to acquire it from the US considering American LNG is 40% more expensive.
Libya, being Africa’s largest oil reserves holder, also has considerable gas assets. But the country has been victim to a long-term armed conflict that is severely undermining its energy export potential to Europe.
The continental need for gas is therefore currently in the hands of Algeria, despite American lobbying in its favor.
As for Morocco’s supply, the Kingdom recently announced its plans to enter the international LNG market as a buyer in the upcoming weeks.
The announcement was made by Energy Minister Leila Benali during the 15th conference on energy transition organized in Rabat last Monday.
She said four ports will be prepared to receive the supply of liquefied natural gas, and plans are underway to build storage units ahead of distribution.
“Morocco’s access to this market will stimulate the economy and reduce carbon dioxide,” the Minister said.
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