Algeria Boosts Gas Supplies to Spain amid Iran War Tensions

Algeria is set to increase natural gas supplies to Spain as European nations scramble to secure energy amid mounting volatility triggered by the war in Iran.

The announcement came during an official visit by Spanish Foreign Minister José Manuel Albares to Algeria, where both countries agreed to deepen cooperation in the energy sector and expand gas deliveries.

“We have decided to strengthen our relationship in gas and energy and take it further by increasing supply volumes,” Albares told reporters, emphasizing Algeria’s role as a “reliable and stable supplier” at a time of global uncertainty.

The increase in supplies will primarily flow through the Medgaz Pipeline, the key subsea link connecting the two countries via the mediterranean sea. The pipeline has a nominal capacity of 32 million cubic meters per day, with recent flows averaging around 28 million cubic meters in January and February.

Both sides aim to operate the pipeline at full capacity, implying an increase of roughly 10%, compared to the current estimates. 

State-owned energy giant Sonatrach holds a 51% stake in the pipeline, while the remainder is owned by a joint venture involving Spain’s Naturgy and U.S. investment firm BlackRock.

The move comes as Europe faces heightened pressure to secure stable gas supplies following disruptions linked to the Iran conflict. The near shutdown of the Strait of Hormuz, a key route for global energy flows, has intensified concerns over supply shortages and price spikes.

European leaders have increasingly turned to alternative suppliers such as Algeria and Norway to reduce dependence on unstable routes and conflict-affected producers in the Middle East. Italy has also entered negotiations with Algeria for additional gas volumes, reflecting a broader regional push to diversify supply sources.

The agreement also signals a thaw in previously strained relations between Algeria and Spain. Tensions had escalated in 2022 over pricing disputes and geopolitical disagreements, particularly concerning Spain’s stance towards the Western Desert.

However, Algerian President Abdelmadjid Tebboune said bilateral relations are now showing “promising prospects” and renewed momentum. Algeria has moved to reactivate its friendship treaty with Spain, underscoring a shift toward closer cooperation.