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HomeAfricaGME Gas Pipeline: Algeria Maintains Its Decision to Close (Algerian Source)

GME Gas Pipeline: Algeria Maintains Its Decision to Close (Algerian Source)

Four days before the expiration date of the GME gas pipeline contract on Sunday, October 31, Algeria is sticking to its position.

The visit of the third vice-president of the Spanish government and Minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera Rodriguez this Wednesday, October 27 did nothing.

Coming to try to change the Algerian position, it left with the assurances and commitments of senior Algerian officials on the security of Spain’s gas supplies, but only via the Medgaz, the gas pipeline that connects Algeria to the Iberian Peninsula.

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“Algeria, through Sonatrach, will honor its commitments with Spain, relating to the supply of natural gas and it is ready to discuss the conditions of additional gas deliveries”, declared the Algerian Minister of Energy Mohamed Arkab, following his meeting with Teresa Ribera Rodriguez. “We assured the Spanish partner that we are ready to talk about additional quantities and to set a program to supply all these quantities with gas.”

For the GME, an Algerian source told TSA that Algeria maintains its decision to close this GME gas pipeline, after 25 years of service.

According to the Spanish newspaper El Pais, the Spanish official came to Algiers on Wednesday to try to convince Algiers to reverse its decision not to disconnect Spain’s gas supply from the GME, and inevitably to close this pipeline, which Morocco derives substantial income.

A hard blow for Morocco

The kingdom takes 800 million to one billion m3 of Algerian gas at a preferential price, in addition to the rights of way which vary between 50 million and 200 million euros, depending on the quantities of gas transported. Algerian gas which passes through the GME enables Morocco to produce 10% of its electricity.

For Spain, which imported nearly 10 billion m3 of Algerian gas in 2020, it does not want to depend on a single gas pipeline for its supplies. Algerian gas represents 30% of the electricity produced in Spain, which is enormous.

But Algeria, which no longer wants to depend on Morocco, with whom it no longer maintains diplomatic relations since August 24, to supply its main customer in Europe, has decided to increase the capacities of Medgaz by 1.5 billion. m3 to bring them to 10 billion m3 per year, in addition to the mobilization of Sonatrach’s fleet of LNG boats to cope with a possible increase in Spanish demand. 

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