Algeria and Spain strengthen their energy partnership

Spain and Algeria have agreed to strengthen their partnership in energy, said Spanish Foreign Minister Jose Manuel Albares on Thursday after meeting Algerian president?Abdelmadjid Tebboune.

Albares did not say whether Algeria agreed to increase the amount of gas it supplies to Spain.

Iran's conflict has thrown energy markets into chaos and caused a rise in volatility. This has led some people to seek gas elsewhere. The CEO of Spanish utility 'Naturgy, Francisco Reynes, said that the company was looking to strengthen its relationship with Algerian shareholder Sonatrach and its Algerian supplier Sonatrach.

According to figures that the Spanish company provided to the market for 2022, Naturgy has signed gas contracts with the Algerian state oil company and gas company worth approximately?5 billion cubic metres per year.

According to Enagas, the Spanish gas grid operator, Algerian gas accounted for more than 29% in Spain's total imports of gas during the first two month of this year.

Sonatrach owns a 51% stake in the Medgaz pipeline. Naturgy is only a minor partner. Sonatrach has an additional stake of 4% in Naturgy.

Algeria is not the only country that has asked for more gas due to the disruption caused by the Middle East conflict.

Giorgia?Minister Meloni, the Italian Prime Minister's?Minister during her visit to Algiers last week said that she hoped Algeria would send more gas to Italy.

(source: Reuters)