Algeria Back On Top As Spain’s Largest Natural Gas Supplier

Algeria reclaimed its title as Spain’s largest natural gas supplier in January, providing 25% of the country’s monthly demand, according to Enagas.

 Algeria has long been Spain’s largest natural gas supplier since Enagas began collecting records, according to Reuters. But last January, the United States knocked Algeria off the top as Algeria-Spain relations soured following the latter’s public recognition of Morocco’s autonomy plan for the disputed area of Western Sahara. The former Maghred-Europe pipeline was shut down in the last quarter of 2021 following Spain’s recognition.

Following the pipeline shuttering, Algeria suspended last year the “treaty of friendship, good neighbourliness and cooperation” that it signed with Spain in 2002, Algeria said.

Last October, Algeria’s Sonatrach and Spain’s Naturgy revised 2022 nat gas prices, but put off talks of 2023 gas prices. According to Reuters figures from last October, Sonatrach supplies about 5 billion cubic meters of gas per year to Spain per contracts signed decades ago. The contracts are valid until the end of this decade, with periodic price reviews.

Algeria agreed to fulfill its contractual obligations for supplying gas to Spain even though it pulled its ambassador to Madrid in June as tensions escalated.

Enagas data suggests that 8545 GWh of total gas deliveries to Spain last month came from Algeria through the Medgaz pipeline.

For January, the United States supplied 20.7% of Spain’s natural gas, and Nigeria was third, supplying 20.2%--with 100% of it being LNG.

Meanwhile, Spain’s Russia deliveries tripled year over year in January, to 6372 GWh, up from 2,178 GWh—the highest volume since June.

Last week, Enagas reported that the number of ships loading LNG in Spain and making its way to Europe doubled last year compared to 2021.

Spain boasts six LNG terminals, with another one soon on the way.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:

• Why The White House Is Wrong About Oil Major Share Buybacks
• Tesla’s Huge Model 3 Discounts Lift Car Sales In China
• Energy, Metals Investments To Boom In 2023