Algeria reduces the supply of natural gas to Spain by around 25%

Algeria has to Spain. According to the daily monitoring data of the gas system, the entry through the Medgaz gas pipeline has fallen by around 25% in the last week compared to the levels registered in mid-March and stands at the minimum entry levels in what what’s up this year

According to the data provided daily by Enagás, 234 GWh/day have been entering since May 1, compared to the 312 GWh/day registered on March 14, the date on which the Prime Minister, Pedro Sánchez, sent the controversial Letter to the King of Morocco with the change in Spain’s political position regarding the Sahara.

Since the beginning of the crisis with Algeria, the supply has slowly receded except for the cold wave registered on April 7 to 9, in which between 324.2 and 334.2 GWh/day entered through Medgaz, a figure similar to those registered in January and February. The inflow of gas for this month of May is even lower than the figure for May of last year without counting the expansion of capacity.

Industry sources indicated that the reduction in the arrival of gas from Algeria is due to the normal flow of demand, but this exercise is not a regular one, since the European Commission is trying to impose storage levels of 80% for all European countries. and the gas shortage is causing an increase in electricity prices and points to less programming by the marketers.

The Algerian government had pending with the Spanish the inauguration of the Medgaz capacity expansion, but since January, the official act has not been able to take place despite the contacts that have been maintained between the companies involved to try to find a satisfactory date mutually.

Algeria promised last October to supply all the gas needed to meet Spanish demand and has assured that it will scrupulously comply with the contracts except in the event of a redirection of gas to Morocco, an extreme that they will consider breach of contract.

Sonatrach has lost weight in the supply of gas to Spain since it decided to close the supply through the Maghreb gas pipeline to the benefit of the arrival of methane tankers from the United States. In fact, it has gone from representing 45% of the supply to just 22%.

The Maghreb gas pipeline has remained since its closure on November 1 in perfect magazine condition to be able to activate it at any time, as explained by sources in the gas sector.

Morocco asked Spain to use this connection to be able to supply itself with gas after Algeria’s decision to cut off the supply of around 1 bcm that reached the country through this network.

The sector attributes the fall to the lower demand for gas, at the height of the warehouse filling season

On March 14, the President of the Government, Pedro Sánchez, sent a letter to the King of Morocco, Mohamed VI, in which he stated that “Spain considers that the Moroccan autonomy proposal presented in 2007 is the most serious, credible and realistic basis for for the resolution of this dispute”.

The letter, revealed by Morocco, provoked a quick reaction from Algeria, which called its ambassador in Spain for consultations. Algeria has spent months negotiating an increase in the price of the gas it supplies to Spain. Both parties are negotiating a review of the contracts for the years 2022-2024 in which Sonatrach requests an increase following the situation in the international markets.

The parties have agreed on a formula since October 2020 that led to a sharp price drop, but now Algeria wants to transfer the market tension to Spanish consumers, contrary to what it will apply to other customers such as Italy, as the managers themselves have assured. of Sonatrach.

Algeria has informed the Government that it will remain vigilant to prevent gas from its territory from being supplied to Morocco. As explained by the Spanish Government, Morocco will be able to acquire liquefied gas in international markets, unload it at a peninsular regasification plant and use the Maghreb gas pipeline to reach its territory.

The department headed by Teresa Ribera also gave guarantees that “in no case will the gas purchased by Morocco come from Algeria.” Usually, from April 1, the gas storage filling season begins.