Spain responds to Algeria regarding gas exported to Morocco

The Spanish government has responded to the requests of its Algerian counterpart, the Spanish Ministry of Environmental Transformation and Demographic Challenge having asked the company “Ingaz”, in its capacity as supervisor of the Spanish gas system, to implement a system to clarify the sources of gas reaching Spain so that gas of Algerian origin is not exported to Morocco.

In this regard, Spanish reports have indicated that the company “Ingaz” has begun work on a new system to show the origin of gas arriving in Spain, based on new orders from the Spanish Ministry of Environmental Transformation, noting that the Sanchez government will begin to confirm the source of gas arriving in Spain, with the aim of satisfying Algeria, which has warned against sending its gas to Morocco.

Under an agreement with Spain, Morocco will start buying liquefied gas on the international market and transporting it to Spain before transporting it to its territory via the Maghreb gas pipeline.

The new Spanish “origin” system makes it possible to know the origin of the gas purchased by Morocco before it is transported through the Maghreb-Europe gas pipeline, by the Spanish company overseeing the gas sector in the country.

Company sources said that “in order to ensure transparency and guarantee the origin and destination of the LNG that Morocco contracts in international markets, the Spanish government has ordered the company to work as soon as possible on this system of guarantees of origin.”

Spain has decided to allow Morocco to supply gas in the opposite direction through the same pipeline that runs from Algeria to Spain via Morocco. Rabat will be able to buy LNG on the international markets and deliver it to Spain, where it will be gasified before being transported to Morocco via the pipeline.

Algeria has threatened to terminate the gas export contract to Spain, to re-export it to Morocco. The Algerian Ministry of Equipment and Mines said in a statement that “any quantity of Algerian gas exported to Spain whose destination is other than those stipulated in the contracts, will be considered a breach of contractual obligations and may lead to the termination of the contract linking Sonatrach with its Spanish customers.

Despite the decrease in Spain’s dependence on Algerian gas in recent months, about a quarter of the gas imported by Spain still comes from Algeria in the first quarter of this year, compared to more than 40% in 2021, according to the Spanish gas network operator. This gas is transported to Spain via the Medgaz undersea pipeline that directly connects the two countries.

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