Spain and Algeria in Talks to Increase Gas Supply by 10% Through Medgaz Pipeline Amid European Energy Concerns
Spain and Algeria are in advanced negotiations to increase gas supplies through the Medgaz pipeline, potentially boosting flows by up to 10%, as Europe seeks more secure energy sources amid geopolitical tensions.
Two sources familiar with the discussions told Reuters that a preliminary agreement could be reached during Spanish Foreign Minister José Manuel Albares’ visit to Algiers this week.
After meeting Algerian President Abdelmadjid Tebboune and senior officials, Mr. Albares confirmed that talks on higher volumes were ongoing, citing continued volatility in global gas markets.
“We have discussed increasing the volume of gas. We also spoke about the context of the gas market amid the war in the Middle East,” he said.
The potential increase would rely on spare capacity in the Medgaz pipeline, which directly connects Algeria to Spain and can carry roughly 1 billion cubic meters (bcm) of additional gas per year.
These negotiations reflect a broader European strategy to strengthen ties with Algeria, a key gas supplier, as conflict-driven disruptions continue to affect energy markets.
Recent tensions in the Middle East have heightened uncertainty over supply routes, prompting buyers to seek more stable sources closer to home.
Algeria already plays a vital role in Spain’s energy mix. Data from Spain’s gas grid operator, Enagás, show that Algerian gas accounted for more than 29% of Spain’s imports in the first two months of the year, making it one of Madrid’s top suppliers.
Commercial ties between the two countries remain strong. Spanish utility Naturgy holds long-term contracts with Algeria’s state energy company, Sonatrach, for about 5 bcm of gas annually.
Sonatrach also owns a majority stake in the Medgaz pipeline and a minority share in Naturgy, highlighting the depth of the bilateral energy relationship.
Other European nations are also turning to Algeria. Italian Prime Minister Giorgia Meloni said during her visit to Algiers this week that Rome is seeking additional gas supplies, underscoring growing competition for North African energy.
For Algeria, the increased demand presents an opportunity to cement its position as a strategic supplier to Europe. For Spain and its neighbors, securing additional volumes could help buffer against further shocks in an already fragile global energy market.
