Algeria warns Spain against re-exporting its LNG flows to Morocco

RIYADH: Algeria has cautioned that it will halt natural gas flows to Spain if it re-exports supplies as diplomatic tensions with Morocco escalate, according to Bloomberg. 

This comes as the Spanish energy minister Teresa Ribera announced that Madrid will allow for gas flows to Morocco via the Maghreb-European pipeline, also known as MEG. 

“We see the Algerian warning as a reminder that no Algerian gas should go to Morocco. We expect Morocco to announce a specific LNG contract in Spain with specific volumes, and this should hopefully address the concerns,” Bloomberg reported, citing analysts from investment banking firm JPMorgan Chase & Co.

Algeria poses as Europe’s largest supplier after Russia and Norway, providing as much as 8 percent of its gas imports. 

On the other hand, Morocco is planning to purchase liquified natural gas and direct it to Spanish re-gasification terminals, to be later piped through the MEG pipeline, according to Morocco’s energy minister Leila Benali.

Since the MEG pipeline is owned by Moroccan, Spanish, and Portuguese firms, flows can be reversed without Algeria’s consent, according to Morocco.