A lasting collaboration between Algeria and Spain
According to Enagás, the Spanish gas network operator, 25% of gas deliveries to Spain in January 2021 came from Algeria. This situation is a return to normal after diplomatic tensions with Madrid escalated when the Spanish government changed its position on Western Sahara, leading Algeria’s Sonatrach to review gas prices. Thus, Spain and Algeria have become closer and have signed a number of strategic agreements of great importance.
The main agreement concerns the construction of a new gas pipeline intended to alternately transport natural gas, hydrogen, and blue and green ammonia between Italy and Algeria.
For her part, Italian Prime Minister Giorgia Meloni affirmed that Algeria can become a pioneer in the field of energy at African and global levels. The United States and Nigeria followed on the list of major suppliers to Spain with 20.7% and 20.2% respectively, with all volumes shipped as liquefied natural gas. Deliveries from Russia tripled year-on-year to 6,372-gigawatt hours from 2,178 GWh for January 2021.
Germany and Portugal join the Franco-Spanish project
At the same time, Spain and France are launching a Franco-Spanish project to link Marseille and Barcelona via a new hydrogen export corridor. Paris and Madrid are counting on this new project to provide this material to Europe, especially since the agreement includes Portugal and Germany is expected to join.
With this in mind, Algeria confirmed its desire to make Italy a major energy hub for the European continent and discussed with Germany the possibility of establishing cooperative relations through mutually beneficial partnership projects, in particular the development, transport and marketing of green hydrogen.
The objectives of the European Union concerning renewable energy in 2030
In a report published by the European Council for International Relations, it is estimated that in order to achieve its goal of net zero emissions by 2030, the European Union must intensify its partnerships with the countries of North Africa in the field of renewable energies.
The agreement between Algeria and Italy also provides for economic-industrial cooperation and will extend cooperation to the space sector. The visit of the President of the Italian Council of Ministers, Giorgia Meloni, brought back enough contracts to heat Italy for the rest of the winter.
In conclusion, thanks to continued cooperation and significant investments, Algeria is again becoming the main source of gas for Spain. In addition, Algeria can become a model for North Africa and for Europe in terms of renewable energy management. The collaboration between Algeria and Italy, as well as the creation of a new Franco-Spanish hydrogen corridor, shows that Algeria is a key and very important player in Europe. Yet, only time will confirm whether these collaborations and investments will have a positive impact on stakeholders in the short or long term.
