Algeria threatens to cut gas contract with Spain, 'if it resells Morocco'

Algeria, Africa’s largest gas exporter, warned on April 27 that it would end gas supplies to Spain if Madrid sold any Algerian gas to other countries.

Algeria explained that it will not hesitate to put an end the signed contract if the Spanish government uses the gas for any purposes other than that agreed, namely to resell it to Morocco.

“Any amount of Algerian gas exported to Spain whose destination is other than those stipulated in the contracts, will be considered a breach of the signed agreement,” said the Algerian Ministry of Energy and Mines.

The warning came after Spain’s decision to “start sending gas, to Morocco via the Maghreb-European pipeline,” but stressed that none of that gas would be of Algerian origins.

Following the revived Moroccan-Spain relations, the country promised to help Rabat “guarantee its energy security” by allowing it to transport gas through the Gaz Maghreb Europe pipeline (GME).

“Morocco will be able to purchase Liquefied Natural Gas (LNG) on the international markets, unload it at a regasification plant on the Spanish mainland and use the Maghreb gas pipeline to bring it to its territory,” said Spain’s Energy Ministry in a statement on Wednesday.

Gas normally flows through the GME (Gaz Maghreb Europe) line from Algeria to Spain via Morocco. However, after cutting diplomatic ties with Rabat in November 2021, Algeria had decided to shut supply through the GME pipeline, which links Spain to Algeria via Morocco.

The decision deprived Morocco of Algerian gas, and Spain currently receives the Algerian gas through the Medgaz line, which doesn’t cross Morocco.

Despite Spain’s heavy dependence on Algerian gas, Madrid has radically changed its position regarding the Western Sahara conflict and supported Morocco’s Autonomy Plan.

Earlier this month, Algerian President Abdelmadjid Tebboune described Spain’s stance on Western Sahara as “morally and historically unacceptable.”

“We have very strong ties with Spain, but the head of government broke everything,” Tebboune said to local news outlets.

To protest against the Spanish shift, Algeria also recalled its ambassador from Madrid, saying that the Algerian authorities were “very surprised by Spain’s statements.”