Spain Endures A Double Punishment Because Of Algerian Gas

The sequence of events in the file of Algerian-Spanish relations showed that Madrid, and through its Prime Minister Pedro Sanchez, had punished his country twice, given Algeria’s decision to cut gas supplies that it was receiving at competitive prices, and also by importing gas from the United States and the Russian opponent at very exorbitant prices up to 10 times the old price.

In this context, data published by various energy bodies in Spain indicate that Algeria’s coverage of the European country’s gas needs reached 23.4% last July, down from rates that were more than 50% in previous years.

One of the things that also emerged is that the United States has become one of the most important suppliers of gas to Spain, as it covered its supplies with 23.3% of Spain’s imports last July.

Meanwhile, LNG supplies from Algeria to Spain stopped permanently last July, and local media in the European country confirmed that this interruption also occurred in August, as published by Echorouk in a previous edition.

However, a closer look at these data shows that Madrid acquires approximately the same quantity of gas from Algeria and the United States, but the difference is that Spain pays a huge price for obtaining the American GNL, in light of Algeria’s decision to cut gas supplies.

According to this perspective, Algeria has saved itself from selling additional quantities to Spain at prices that may not be at the same level as the free market or the Italian market, about which a review of prices was made, according to what was previously announced by the CEO of Sonatrach, and this happened after the visit of Italy’s Prime Minister Mario Draghi to Algeria last April, by bringing prices to the level of the current market reality.

Another matter, which must be noted, is that the reduction in Algeria’s natural gas supplies and the suspension of liquefied gas exports, at least last July to Spain, at a time when it is in dire need, inevitably means that those quantities that did not go to the Iberian Peninsula necessarily have their customers like Italy or other European countries, given the agreement signed between Sonatrach and Eni to raise supplies of up to 9 billion cubic meters annually, and this means that what is not heading towards Spain will inevitably go towards Italy or other destinations, such as France, Greece, Portugal or Turkey.

In the same context, the Spanish Minister of Ecological Transformation, Teresa Ribera, who is also Vice President of the government, sent words of cordiality and courtesy towards Algeria during a parliamentary questioning.

Spanish media said Wednesday that Teresa Ribera responded that “there are no indications that Algeria has breached its contractual obligations with Spain.”

According to the same sources, the parliamentary accountability by a Spanish MP said that the government of Pedro Sanchez caused a reduction in supplies through the only gas pipeline connecting the country with Algeria, and headed towards Russia, and all this because of his shift in position regarding Western Sahara.

“The government will continue efforts to have the best relations with Algeria”, the Spanish official added.

This is the third time the Spanish government officials sent messages and expressions of sympathy toward Algeria, after the prime minister and his foreign minister, but the Spanish steps were completely ignored by the Algerian side.