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Rabat – Algerian news outlet Algerie Part Plus has reported that Algeria’s decision to terminate the Maghreb-Europe gas pipeline is due to a significant drop in the country’s natural gas production and collapse of its natural gas export capacity.
In a detailed report about “the untold truth of the termination of the Maghreb-Europe pipeline,” the Algerian news outlet showed that the Algerian regime has not been forthright about the real reasons that led it to end the contract of the regional pipeline project.
On Sunday, October 31, the Algerian government announced the cessation of commercial relations between Algeria’s Sonatrach and Morocco’s Office for Electricity and Drinking Water (ONEE), effectively ending the Algeria-Spain-Morocco pipeline agreement known as Europe-Maghreb pipeline.
In its statement, the Algerian presidency cited continued “ hostile” acts from Morocco as the reason why it was no longer willing to extend the contract of the Europe-Maghreb pipeline.
According to Algerie Part Plus, however, the decision is driven by a considerable decrease in Algeria’s gas reserves.
The decision is also due to a “consequent” increase in internal consumption which exceeds 52% of the gas produced by Algeria, the report showed.
Domestic consumption of gas in Algeria has been exceeding the volume of gas exports since the 2018-2019 season. Using data from an internal report from Sonatrach, Algerie Part Plus assessed that the volume of natural gas exports to Algeria reached 63.3 million tonnes of oil equivalent. In 2019, Algeria’s gas exports fell to 25 million tonnes of oil equivalent, while domestic consumption increased notably.
The volumes of natural gas for national competition reached over 42.3 million tonnes of oil equivalent in 2018. A year later, the volumes increased to 43.6 million tonnes of oil equivalent.
The data also revealed a limited quantity of oil that Algeria can export to other countries.
“Since 2020, Algeria can only export 45 pr 49 billion cubic meters/ year of natural gas whereas it exported more than 65 billion cubic meters/ year at the beginning of the 2000s,” Algerie Part Plus said.
Judging from Sonoatrach’s most recent data, Algeria’s gas exports are expected to drop to less than 40 billion cubic meters in the coming years as national consumption is projected to exceed 55% of the quantity of gas produced locally.
“It is for these purely economic reasons that Algeria can no longer afford to maintain the Maghreb-Europe gas pipeline,” Algerie Part Plus emphasized.
The Maghreb-Europe gas pipeline, whose contract expired on Sunday, was supplying Spain with gas through Morocco. The pipeline had been operating since 1996.
Before halting the contract, Algeria reassured Spain that it would maintain its Medgaz pipeline in operation to directly export gas to the Spanish market.
