Spain and Algeria are holding advanced negotiations to raise gas deliveries via the Medgaz pipeline, potentially increasing flows by as much as 10%, as Europe seeks to secure energy supplies amid geopolitical instability.
Two sources familiar with the talks told Reuters that the discussions are approaching a preliminary deal, which could be finalized during Spanish Foreign Minister José Manuel Albares’s visit to Algiers this week.
After meetings with Algerian President Abdelmadjid Tebboune and senior officials, Albares confirmed that higher gas volumes were under discussion, citing ongoing volatility in global energy markets.
“We have discussed the possibility of increasing volumes and addressed the context of the gas market given the war in the Middle East,” he said.
The planned increase would utilize available capacity in the Medgaz pipeline, which links Algeria directly to Spain and can handle roughly 1 billion cubic metres of additional gas per year.
These discussions illustrate a broader European trend of strengthening energy ties with Algeria, one of the continent’s main gas providers, as Middle East conflicts create supply uncertainties.
Heightened tensions in the Middle East, particularly those involving Iran, have added new risks to traditional supply routes, prompting buyers to prioritize more reliable sources closer to home.
Algeria already plays a pivotal role in Spain’s energy portfolio. According to data from Enagás, Algerian gas accounted for over 29% of Spain’s imports in the first two months of the year, making it a top supplier to Madrid.
Commercial relations between the two nations remain robust. Spanish energy company Naturgy maintains long-term contracts with Algeria’s state-owned energy firm Sonatrach for approximately 5 billion cubic metres of gas per year.
Sonatrach also holds a majority stake in the Medgaz pipeline and a minority share in Naturgy, reflecting the depth of the bilateral energy relationship.
Other European nations are also seeking more Algerian gas. Italian Prime Minister Giorgia Meloni noted during her visit to Algiers that Italy aims to secure additional supplies, highlighting growing competition for North African energy.
For Algeria, the rising European demand offers an opportunity to cement its role as a strategic supplier.
For Spain and neighboring countries, obtaining extra volumes could help mitigate risks amid an already fragile global energy market.