Algeria to cut gas supply to Spain amid breach of contract

Algeria is threatening to cut its gas supply to Spain if any of it ends up in another country that is not specified in the contract.

According to Algeria the supply of gas to a third destination be a breach of contract between Algeria’s state-owned Sonatrach and its Spanish customer.

This comes amid confirmation by Spain that some of the gas it intends to ship to Morocco originated from Algeria.

At the same time, Algeria’s threat comes amid a decision by Madrid to supply gas to Morocco in a reverse flow through a pipeline that links Spain via Morocco.

The Maghreb-Europe pipeline, through which Morocco also got its gas supply, has not been used since October, after Algeria severed diplomatic ties with Morocco.

Algeria and Morocco have long had a fractious relationship – especially over the disputed territory of Western Sahara.

Algeria supplied Spain with more than 40% of its natural gas last year through a direct pipeline.

European countries have been looking to African countries for natural gas supplies amid the Russia-Ukraine war that has cast doubt on gas supply from Russia.

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