Morocco: Electricity prices will not rise after Algeria ended gas contract

Morocco said yesterday that Algeria’s use of a new pipeline to provide Spain with gas will not affect electricity production in the country.

Algeria previously provided Spain with gas through the 13.5 billion cubic-metre (bcm) Maghreb-Europe pipeline which travelled through Morocco. The contract for its use ended on 31 October with Algeria deciding to supply Spain through the Medgaz undersea pipeline.

Under the previous agreement, Rabat received royalties worth 0.5 billion cubic metres of gas, which make up half the country’s consumption.

This will not affect supplies, Moroccan government spokesman, Mustapha Baitas, said. “The proof is that the production of electricity in our country has not stopped, and the most important thing is that the price of electricity will not increase in any way,” said Baitas.

Relations between Morocco and Algeria are in a serious diplomatic crisis, following the latter’s decision in August to sever relations with Rabat due to what it considered “continued hostile acts”. Morocco rejected the “false and absurd” claims.

Algeria: Morocco used gas pipeline as a bargaining chip in Western Sahara issue