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Gas exports : Medgaz pipline takes over

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Today; the last day of October, marks the last day for the The Maghreb-Europe gas pipeline (GME), which ensured the supply of the Iberian Peninsula and Portugal in Algerian natural gas via Morocco, for twenty-five long years of service. This line will be officially replaced by Medgaz; and ambitious project with bright potential .

The contract governing the GME, which expires legally, at this deadline, will not be renewed. The President of the Republic had officially decided the issue, in early October, during a meeting with the national media, stating that the Algerian authorities have, in fact, agreed with the Spaniards to supply them with natural gas via the Medgaz pipeline, and to ensure that in case of unforeseen circumstances, the supply will be done by Algerian ships in the form of liquefied gas.

These words are meant to reassure the Spanish partner, especially since Algeria is the first supplier of natural gas to Spain, and that its exports alone represent nearly half the volume of annual gas consumption of Spain. The decision of the Algerian authorities not to renew the contract of exploitation of the GME, despite the insistence of the royal palace for its maintenance, came, as a reminder, as a reaction to “hostile acts”, and “provocations” of Morocco against our country. This step, followed the break of diplomatic relations between the two countries, since August 24, at the initiative of Algeria after tensions between the two countries have reached their peak.

Thus, from November 1, the Algerian gas will no longer transit through the western neighbor who drew from the GME nearly a billion m3 intended for the production of 10% of its electricity needs, in addition to the benefit of income generated by the rights of passage of the pipeline on its territory which brought him between 50 and 200 million dollars per year, depending on the evolution of gas prices on the international market.

Operational since 1996, the GME pipeline, the main source of supply for Spain, with a transport capacity of 13.5 billion cubic meters of gas, provides one third of Algerian natural gas supplies to Spain from Hassi R’mel over a distance of 1400 km, 540 km of which crossing Morocco. This passage of the GME to Medgaz, submarine pipeline, inaugurated in 2004, linking directly Algeria to Spain through Beni-saf (Ain Témouchent) will not affect the supply capacity of Algeria which is up to its contractual commitments, reassured the Minister of Energy and Mines. Mohamed Arkab announced, in this regard, that the loading capacity of natural gas Medgaz, currently estimated at 8 billion m3 / year will be increased to 10.5 billion m3 by the end of the year, in addition to the use of the country’s potential in liquefied gas to meet the Spanish demand for additional needs. The Minister of Energy and Mines has assured, in this regard, “Algeria, through the company Sonatrach will honor its commitments with Spain, relating to the supply of natural gas” and it remains willing “to discuss the conditions of additional gas deliveries. In the same context, Mohamed Arkab said that the Algerian side also “that all deliveries are made through the facilities in Algeria, via the Medgaz pipeline, and gas conversion complexes. Thus, Algeria will have appeased the apprehensions of the Spanish partner who said reassured on this subject, during discussions, recently in Algiers, between the Algerian Minister of Energy and Mines and the Spanish Minister of Ecological Transition, Teresa Ribera. The latter has, in fact, said to have been informed of “arrangements made to continue to ensure, in the best way, gas deliveries through the Medgaz, according to a well determined timetable.

elmoudjahid.com 31/10/2021

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