Spain may provide Morocco with gas from Algeria

Spain may buy larger quantities of Algerian gas in order to re-export some to meet the needs of the Moroccan market, local media reports have said, however, such a plan would require great financial investments in the pipelines needed to transport the gas.

Algeria, which has supplied the Spanish market through Morocco for years, said earlier that it will begin sending gas supplies to its European client through an alternative pipeline Medgaz instead of using the traditional  Maghreb Europe Gas Pipeline.

This would leave Morocco out of pocket as it had previously received royalties worth 0.5 billion cubic metres of gas, which make up half the country’s consumption. The contract for the use of the Maghreb Europe Gas Pipeline comes to an end on 31 October.

At present, powerful pumping stations direct Algerian gas through Morocco and then to Spain, and if Madrid is to supply Morocco with the gas it needs, then the systems will need to be reversed which will require investment and time.

It is not clear if Algeria will be willing to provide Spain with additional gas to allow for such trade to take place. While Morocco will be forced to purchase gas at the international market price and not at reduced costs which had previously been agreed.

READ: Algeria says it is meeting gas commitments to Europe