Spain and Algeria Agree to Deeper Energy Cooperation

Spain and Algeria have reached a consensus to strengthen their energy partnership following high-level diplomatic talks in Algiers. Spanish Foreign Minister Jose Manuel Albares confirmed the commitment on Thursday after meeting with Algerian President Abdelmadjid Tebboune. > Algeria is a stable and reliable supplier of gas. While Albares underscored the reliability of the partnership, he did not explicitly state whether a deal for increased gas volumes had been reached. The move comes as the conflict involving Iran continues to disrupt energy markets and fuel price volatility, prompting European nations to diversify their supply sources. In the corporate sector, Naturgy Energy Group, S.A. has expressed a desire to deepen its relationship with its Algerian supplier and shareholder, Sonatrach. Francisco Reynes, CEO of the Spanish utility, noted this week that the company seeks to reinforce its long-standing connection with the Algerian state-owned oil and gas firm. Currently, the company maintains gas contracts with Sonatrach for approximately 5 billion cubic metres annually. According to data from the grid operator Enagás, S.A., Algerian gas accounted for over 29% of total imports into the Spanish market during the first two months of the year. This supply is transported via the Medgaz pipeline, in which Sonatrach holds a 51% majority stake and the Spanish utility is a minority partner. Sonatrach also holds an equity stake of approximately 4% in the Spanish energy group. Spain is not the only European nation looking toward North Africa for energy security. Italy has also been actively seeking increased volumes. During a visit to Algiers this week, Italian Prime Minister Giorgia Meloni expressed her hope that the North African nation would boost gas deliveries to her country to mitigate regional supply disruptions.