Algerian Gas Is The Most Competitive In Europe

The stakes of the visit paid by the Italian Prime Minister, Mario Draghi, to Algeria can be understood by observing the position of the affected country (…) regarding this visit, which is Spain, which has had no bridges of communication between it and Algeria since last March 18, following the reversal of its position on the Western Sahara issue, from one extreme to the other.

The echo of the Italian official’s visit to Algeria on Monday was strongly present in the Spanish press, which allocated a wide space to the gas issue, especially since Rome and Madrid were, until recently, competing for the first place in Algerian gas exports to the northern bank of the Mediterranean.

“El Pais”, the largest Spanish newspaper with a reputation in the Spanish-speaking world (Central and South America), presented this visit with some regret, and wrote commenting on the setback of diplomatic relations between Algeria and Madrid: “One word is sometimes enough to change the geopolitics of the region.” And by the “word” it referred to, the letter addressed by the Spanish Prime Minister, Pedro Sanchez to the Moroccan king of the Makhzen, Mohammed VI on March 14, which provoked “tectonic movements in the geopolitics of the Mediterranean”.

Since Pedro Sanchez wrote to the Moroccan monarch about his proposal for autonomy in Western Sahara, made in 2007, as the “most serious, realistic and credible basis” for finding a solution to the conflict in Western Sahara, Algeria has withdrawn its ambassador in Madrid, Said Moussa, and started building more bridges with Italy”.

There is no obsession on the European continent, except for gas after the Russian-Ukrainian war, and this fact made the countries of the northern shores of the Mediterranean consider Algeria as a possible alternative to Russian gas.

Here, the newspaper laments Madrid’s loss of its position in Algeria: “Spain had very good conditions to position itself as a potential distribution center for Algerian gas to Europe, until the moment when Algeria decided to withdraw its ambassador from Madrid. Now, it seems that the privileged place is occupied only by Italy”.

Despite some attempts to assert that it is possible to find other sources of Algerian gas, a source from the energy sector in Europe assured “EL PAÍS” that the ideal country to supply Europe with gas is Algeria: “No one else is closer. In the energy sector, if you have a country near you, it means you have better prices. Germany and Eastern European countries have become dependent on Russian gas not because they are stupid, but because the cost is much cheaper compared to ships from other continents.”
The newspaper quotes the same source as saying: “Today, cooperation between Italy and Algeria, at the expense of Spain, is not reflected in any specific number or contract, adding that Rome has three factors in its interest to become a potential distribution center for Algerian gas to Europe. The first, is the presence of “A large Italian semi-public private company, Eni, is ready to invest in exploration. Eni is the main international company in Algeria in terms of turnover. Italy is also the third largest supplier to Algeria after only China and France. It is its number one customer, ahead of France and Spain.”

The second factor playing in Italy’s favour, is that there is a great “political will” in Rome to expand gas imports from Algeria. “In this world of energy, it is necessary to have political will accompanied by large private companies. This is what Italy has,” says the same source, who pointed out that although “Algeria cannot give up the money that comes from Spain in exchange for gas, Madrid” killed the goose that lays the golden eggs.”
The newspaper concluded with a paragraph revealing the extent of the Spaniards’ heartbreak: “The repercussions go beyond the specific hike in prices at this time. In this jigsaw of war, Algeria is the key. And you do not spit in the face of a partner. Germany is looking for sources of energy everywhere. And we, who were at hand, we just closed the door on him. Perhaps in a year, two or three years, when the Algerian ambassador returns to Spain, it will not be possible to make up for lost time. Italy will have seized the moment.”