Algeria: any change in the destination of the exported gas in Spain may result in the termination of the contract

Algerian television quoted the Ministry of Energy today as saying that any change in the destination of the exported Algerian gas in Spain could lead to the termination of the contract between the national energy company Sonatrach and the Spanish buyers.

The ministry added in a statement that Algerian Energy Minister Mohamed Arkab “received today an e-mail from his Spanish counterpart, informing him of Spain’s decision to authorize the reverse flow through the Maghreb-European gas pipeline”.

The statement stated that the start of this process will take place today or tomorrow, according to the minister.

Sonatrach announced on April 2, 2022 that it would not rule out a “revision” of the price of exported gas in Spain, in the context of the diplomatic tension between Algeria and Madrid on the Western Sahara issue.

“Since the beginning of the crisis in Ukraine oil and gas prices have exploded. Algeria has decided to keep the contractual prices relatively adequate with all its customers, but does not rule out a measure A price review process with the Spanish side.

Spain, which is heavily dependent on Algeria for gas supplies, radically changed its position on March 18 on the sensitive issue of Western Sahara.

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