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Spain Boosts Gas Imports from Algeria Amid Market Turmoil

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Algeria is set to raise gas supplies to Spain as turbulence in global energy markets intensifies amid the war in Iran, according to the Spanish government. The move underscores a renewed push to strengthen gas imports into Spain at a time of heightened uncertainty. Speaking in Algiers on Thursday, Spanish Foreign Minister José Manuel Albares confirmed the decision, stating, “We have decided to deepen our gas and energy relationship and take it even further by increasing supply volumes.” The commitment signals a broader effort to secure stable gas imports while reinforcing bilateral energy ties between the two countries.

Algeria already stands as Spain’s primary supplier of natural gas through the Medgaz pipeline, a key offshore connection linking the two nations across the Mediterranean. Both sides are now working toward operating the pipeline at full capacity, a step that would translate into roughly a 10% increase in flows and further bolster gas imports. Albares held discussions in Algiers with Algerian President Abdelmadjid Tebboune, along with the country’s foreign and energy ministers. The meetings came just a day after Italian Prime Minister Giorgia Meloni visited the Algerian capital with a similar objective of securing additional supplies. Highlighting Algeria’s role, Albares said, “Algeria is a reliable and consistent supplier at a time when the entire global energy market is unfortunately undergoing a profound transformation” due to the war in Iran.

Commercial terms, including pricing and contract duration, remain subject to negotiations between companies involved. Sonatrach, Algeria’s state-owned energy firm, controls a 51% stake in the Medgaz pipeline, while the remaining share is held by a joint venture between Spain’s Naturgy and the US investment firm BlackRock Inc. Spanning 210 kilometers (130 miles) offshore, the infrastructure was the first pipeline constructed between Algeria and Europe and remains central to Spain’s gas imports strategy.

Relations between the two countries had faced strain in 2022, when Algeria pushed for steep price increases during extended contract talks. The tension coincided with Spain’s closer alignment with Morocco over Western Sahara, a long-standing regional dispute. However, recent developments suggest a reset in ties. In a statement, Tebboune described the outlook for bilateral cooperation as “promising” and characterized it by “notable dynamism.” He also confirmed that Algeria has moved to reactivate the previously suspended friendship treaty with Spain, signaling improved diplomatic and energy cooperation going forward.

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