Algeria May Terminate Gas Supply Contract With Spain

Algeria’s energy ministry warned on Wednesday that if Madrid fails to meet its contractual responsibilities and begins reversing gas, the Arab country’s natural gas supply deal will be terminated.

Minister Mohamed Arkab received a letter from his Spanish counterpart Teresa Ribera concerning « Spain’s intention to start reversing gas over the Maghreb-Europe (MEG) pipeline, » according to the Algerian official statement. The Spanish side said the operation will begin on Wednesday or Thursday.

« Any volume of Algerian gas exported to Spain but transferred to a party other than the one indicated in the contract would be regarded a breach of contractual responsibilities and might result in a breach of contract between Sonatrach Algeria and Spanish customers, » according to the ministry.

Meanwhile, Algerian President Abdelmadjid Tebboune said on Sunday that « regardless of the circumstances, » Algeria would continue to send gas to Spain.

Algeria decided not to renew its contract to supply gas to Spain via the Maghreb-Europe pipeline, which runs through Morocco, in 2021. The contract’s termination is linked to deterioration of ties between Algeria and Morocco. Since November, the pipeline has carried all gas supplies from Algeria to Spain over the Mediterranean Sea.


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