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ARCHIVED - Spain turns to Algeria to safeguard gas supply
The Minister of Foreign Affairs has insisted that the gas supply to Spain is not in jeopardy
The Foreign Ministers of Spain and Algeria are due to meet on Thursday September 30 at a summit to safeguard half of the gas supply consumed in this country amid a global energy crisis which has seen prices skyrocket in recent months. Spain has struggled to attract ships loaded with Liquefied Natural Gas (LNG) due to the high global competition, and as autumn sets in and temperatures begin to drop, the North African partner has become an important ally in ensuring the Peninsula’s energy supply.
So far this year Spain has received 19 fewer vessels than in the same period of 2020, representing a 10% reduction on a year that had already seen a decrease in demand due to the coronavirus pandemic. What doesn’t arrive by ship has to be piped to Spain, which is where Algeria comes into the picture: in just one year, the amount of gas transported to Spain has increased from 29% to 47%.
The alliance is not without its complications though, as the ongoing conflict between Algeria and Morocco could seriously affect Spain’s energy supply. One of the two gas pipelines from Algeria crosses Morocco, and if commercial relations between the two nations deteriorate further Spain would have no choice but to rely on ships to supply the country.
In order to do this, Spain would have to become more involved in the complex global market of buying and selling gas tankers from the main producing countries such as Nigeria, Qatar and the USA. This would be a very costly venture, especially since China has effectively sown up the market and dictates the prices.
The Spanish Minister of Foreign Affairs, Jose Manuel Albares, tried to ward off panic yesterday by assuring that Spain would have an adequate gas supply over the winter, insisting that Algeria and Morocco are eager to work with this country.
“The supply of gas to Spain is not in danger,” Mr Albares claimed.
Image: Archive
