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Algeria to stop transporting gas to Spain via Morocco

A foreign delegation visits on December 14, 2008 the Krechba gas treatment plant, about 1,200 km (746 miles) south of Algiers. The In Salah gas project, a four-year old venture grouping energy majors Sonatrach of Algeria, BP of Britain and Statoil of Norway, is described by its managers as the world's first and largest onshore carbon capture and sequestration scheme. The Organization of Petroleum Exporting Countries (OPEC) is due to meet on December 17, 2008 in the Algerian city of Oran. AFP PHOTO / STR (Photo by STR / AFP) (Photo by STR/AFP via Getty Images)
A foreign delegation visits on December 14, 2008 the Krechba gas treatment plant, about 1,200 km south of Algiers [STR/AFP via Getty Images]

Algerian authorities are moving towards transporting gas directly to Spain through MEDGAS and dispensing with pipelines that cross Moroccan territory, RT reported.

During a meeting held by Algerian Minister of Energy and Mines, Mohamed Arkab, with the Spanish Ambassador to Algeria, Fernando Moran Calvo Sotelo, Arkab stressed his country's full commitment to ensuring the delivery of all Spanish natural gas supplies via MEDGAS.

The official welcomed the excellent relations between the two countries in this field and reiterated Algeria's will to strengthen these links and partnership to the benefit of both states.

The two officials discussed cooperation between Algeria and Spain in the field of energy, while describing bilateral ties as excellent, especially in relation to the supply of gas to the Spanish market.

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Arkab also underlined his country's ability to meet the growing demand for gas in European markets, especially Spain.

Earlier this week it was reported that Morocco wishes to continue operating the Maghreb Europe Gas Pipeline, which connects Algeria to Spain via Morocco and whose contract will expire on 31 October.

In return for allowing Algerian gas to travel through its territories, Morocco receives royalties worth 0.5 billion cubic metres of gas, which make up half the country's consumption.

If Algeria refuses to renew the gas agreement or stops exporting to Morocco, Rabat will be forced to import gas from further afield and at a greater cost.

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