- Algeria had shut down one of its main pipelines that cross Morocco, a move that has threatened the supply of natural gas to Spain when the demand is peaking with the onset of the winter.
- The shutdown of the Medgaz Europe pipeline was according to reports, the outcome of a longstanding territorial feud between Morocco and Algeria.
- Spain depends on Algeria for about 60% of its gas imports.
Algeria had shut down one of its main pipelines that cross Morocco, a move that has threatened the supply of natural gas to Spain when the demand is peaking with the onset of the winter. The shutdown of the Medgaz Europe pipeline was according to reports, the outcome of a longstanding territorial feud between Morocco and Algeria. Spain depends on Algeria for about 60% of its gas imports. The move has deprived Morocco also of natural gas, which is used to generate about 10 percent of its electricity. Morocco also stands to lose millions of dollars of transit fees paid by users of the pipeline.
Algeria’s domestic demand for gas also has gone up reducing its exportable surplus. In 2019, according to an internal Sonatrach report cited by independent news agencies, Algeria exported 25.2 Toe of gas and consumed locally 43.6 Toe. Algeria’s energy minister Abdelmedjid Attar had warned that the country will have to give priority to domestic demand over exports starting from 2025. Similarly, Algeria, one of the major oil-exporting country is facing a steep rise in domestic demand for oil that can impact its export capabilities. Almost 95% of Algeria’s exports consist of oil and gas. A fall in their exports is likely to hit Algeria’s finances and its foreign exchange reserves.
