A crisis within “Naturgy” and Madrid touches the pulse of Algeria

The leaks that talked about the possibility of Algeria cutting off gas supplies to Spain have disturbed the ongoing negotiations regarding the efforts of the Emirati company “Taqa” to acquire the Spanish “Naturgy”, which was rejected by Algeria, and the repercussions of these leaks reached the decision-making centers of the Spanish energy giant.
There were reports of a crisis within “Naturgy” immediately after the threat, reported by “Reuters”, to cut off gas from Spain if the takeover took place. At the same time, the Spanish party was quick to feel the pulse of the Algerian position, with another leak stating that the acquisition would not exceed fifty percent after what was initially completed and at a rate not less than 100 percent.
The website of the newspaper “El Espanyol” reported on the Internet on Wednesday, May 15, that the Algerian threat, attributed to an unknown party, had caused a “small crisis” within the “Naturgy” organization, citing an informed source in the company, who was quick to calm the situation, stressing that “no violations have been recorded in recent years by either party in the commercial relationship between Naturgy and the Algerian Sonatrach”.
The government of Pedro Sanchez was also quick to intervene in the deal, based on the right of pre-emption, according to what was stated on the Spanish website “Cinco Dias”, Wednesday, May 15, 2024, to put obstacles in the way of the UAE’s full acquisition of “Naturgy”, Sonatrach’s partner in Algerian gas supply contracts. Towards Madrid until 2031, and in the “Medgas” pipeline, which connects the two countries directly without passing through Moroccan territory, as is the case with the Maghreb-European gas pipeline, on which Algeria stopped work on October 31, 2021.
According to new information, the Spanish government is not considering handing over a strategic company of the level and size of “Naturgy” to the Emirati investor, and it is maintaining a presence in the company’s decision-making to avoid any possible clash with Algeria if the Emirati “Taqa” takes control of the company. Spain, especially since it has become convinced that the background of the deal under negotiation is more geopolitical than economic, as it appears on the surface.
Although more than a month has passed since the announcement of the attempt by TAQA of the United Arab Emirates to acquire “Naturgy”, the negotiations have so far produced no new results, while the lack of enthusiasm on the part of the Pedro Sanchez government to proceed with this risky project has come to the fore. Risky because of a new crisis with Algeria, especially since the problems arising from the sudden change in the Spanish position on the Western Sahara issue, which has taken Madrid out of its historical neutrality, continue to exert negative pressure on bilateral relations. An indication of this trend is what was published in the Spanish newspaper El Periodico de Catalunya, which spoke of the Pedro Sanchez government’s eagerness for the investor in “Naturgy” to be a Spanish company and not a foreign one.
Unfortunately for those responsible for the success of the deal, the negotiations coincided with the presence of Sonatrach and its counterpart, Naturgy, in discussions to adjust the prices of Algerian gas exported to Spain during the year 2023, retroactively, according to what is stipulated in the contracts signed between the two parties, which is a card played. For the benefit of the Algerian party, which does not rule out playing the price card to thwart the Emirati efforts aimed at controlling a partner that sits constantly at the table with Algeria from here until 2031, at a time when diplomatic relations between Algeria and Abu Dhabi have reached unprecedented levels of deterioration. Because the Algerians accused the Emiratis of taking hostile positions against the country’s supreme interests and targeting its national security, which was the reason for the meeting of the Supreme Security Council a few weeks ago.