Algeria increases gas sales to Spain amid regional tensions, expected Macron visit

Talks about strained Algerian-Spanish relations have escalated again after Madrid increased gas purchases from its southern neighbor.

Several observers linked the step to a secret visit by a Spanish delegation to Algeria, while others considered it to be related to pressure from the European Union in an attempt to find a solution to the energy crisis it is going through.

French President Emmanuel Macron will start a 3-day visit to Algeria on August 25, his second since taking office in 2017. This visit raises controversy, and local and international news sites indicated that France is seeking to play a mediating role between Algeria on the one hand and Morocco and Spain on the other.

Relations between Spain and Algeria have been going through an almost complete rupture since March, after Algeria withdrew its ambassador from Madrid, suspended the friendship agreement, and stopped trade exchange, except for gas exports protected by international law.

Algeria took this position in response to what it considers Madrid's bias in favor of Morocco in the Western Sahara conflict and its support for the autonomy proposal submitted by Rabat. In addition, Spain exports gas to Morocco without the consent of Algeria.

The permanent crisis between Algeria and Morocco reached its climax a year ago when Algeria severed diplomatic relations with Casablanca because of what it considered a threat to its national security as a result of normalization with Israel and its military, armament and intelligence extensions.

The decision to cut ties was accompanied by the closure of the Algerian gas pipeline heading to southern Spain through Moroccan territory, which had provided Morocco with a percentage of gas for local use and revenues of more than half a billion dollars annually, according to Elaph.

Huge gas bill

Madrid found itself paying the highest gas bill in its history after the crises it faced, from the Russian-Ukrainian war to the tension with Algeria.

Upstream Online said in one of its reports that the gas bill in Spain will exceed 30 billion euros, or about $29.8 billion, at the end of 2022.

The report pointed out that 12.3 billion euros, approximately $12.2 billion, were imported in the first months of the current issue, an increase of 328% over the same period in 2021. It is expected that the total number may rise to 40 billion euros, or approximately $39.7 billion dollars, according to the current exchange rate.

According to the daily data of Enagas, the Spanish authority responsible for gas, the latest update on August 17, five days after the secret visit, showed that 304 gigawatts/hour of gas had arrived in Spain, compared to 292 gigawatts that had been arriving since August 1.

The level of gas that reaches Spain via pipelines is already close to the level it received at the beginning of the year, about 312-314 gigawatts, according to Al Hurra.

French mediation

France 24 website reported that French President Emmanuel Macron will present a concrete proposal during his visit to Algeria on August 25 to defuse political tensions between Algeria, Spain, and Morocco over the Western Sahara issue. It is a crisis that threatens the stability of the western Mediterranean and worries the European Union in particular.

The report indicated that Macron would propose organizing a mini-summit in Paris or another French city that would bring together Algerian, Spanish, and Moroccan diplomats in order to discuss the solutions that must be implemented to improve bilateral relations between the countries of the region.

Different interpretations

Several observers have offered differing opinions on President Macron's move. Some linked it to the Spanish delegation’s secret visit to Algeria, while others said it was a response to pressure from the European Union.

The Spanish newspaper Ok Diario revealed that a delegation from the Spanish government traveled to Algeria in the midst of the crisis resulting from high gas prices and fears that Russia would reduce its supplies, according to Al Hurra.

The newspaper pointed out that the Spanish executive authority did not confirm or announce the visit. But tracking the movements of the official Falcon plane showed that it landed last Friday in Algeria at around 13:00 and remained in the country until after 18:00 in the evening.

On the other hand, German Chancellor Olaf Scholz stressed the need for European solidarity with regard to gas supplies and called for the construction of a pipeline from Spain to central Europe, especially Germany, through France.

This project is based on Spain's delivery of liquefied gas via ships, converting it to its natural state and exporting it to Europe, due to Spain possessing seven transfer ports with huge tanks that constitute 35% of the European capacity in this regard, in addition to the existing pipelines between Spain and Algeria, according to Reuters.