Algeria Regains Control Of The Spanish Gas Market

Algeria returned last September to become the No. 1 supplier of gas to Spain after its decline over the past months in favour of suppliers from North America and Qatar, a situation that comes after the price review agreement between Sonatrach and Naturgy a few weeks ago, which included reducing gas prices in exchange for larger flexibility in quantities and a longer period for the contract that is signed between the two parties.

Spanish Corporation on Strategic Stocks (CORES) stated in a document published by local media on Friday that Algeria regained its position at the forefront of gas suppliers to Spain during September, adding that the quantities of gas coming from Algeria to the Kingdom of Spain in September 2020 amounted to 100 million cubic meters, which represents 30.6% of the total gas imports of Spain during the same month.

According to the data of the Spanish Authority, Nigeria is the one that ranked second among gas suppliers to Spain after Algeria, then Russia, which means that the suppliers competing to Algeria during the previous months do not affect the first three ranks, i.e. the United States and Qatar.

The same document explained that Spain’s gas imports declined last September by about 15% for natural gas (via pipelines), and 31.8% for liquefied natural gas (LNG).

These developments come in the wake of Spain and Algeria signing an agreement to review gas contracts prices by reducing them compared to the first decade, in exchange for greater flexibility in the exported quantities and also extending the contract period.

It is expected that the quantities exported from Algeria to Spain will increase further in the coming weeks, with the entry into force of the agreement signed between Sonatrach and Naturgy to reduce prices into effect.

The data of the Spanish Corporation on Strategic Stocks (CORES) had shown some time ago that Qatar had snatched the top gas supplier to Spain from Algeria for the first time in history, where the triangle of exports of this substance to Spain is about 23.9%% of the needs of this country, while Algeria reached about 22% during July, in the midst of the talk about reviewing the prices of gas contracts between Sonatrach and Naturgy.