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Rabat – Amid Algeria-Spanish tensions following Madrid’s endorsement of Morocco’s stance on the Sahara dispute, Algeria’s national oil and gas company Sonatrach stated on Friday that it is not ruling out a “recalculation” of prices for the gas sold to Spain.
“Since the start of the Russia-Ukraine crisis, oil and gas prices have exploded,” Sonatrach CEO Toufik Hakar told Algeria Press Service, the country’s press agency.
The CEO explained that Algiers has decided to maintain “relatively correct contractual prices” for its clients, but did not rule out the possibility of recalculating them for Spanish customers.
Spain recently changed its position on Western Sahara, supporting Morocco’s Autonomy Plan after maintaining “positive neutrality” on the territorial dispute.
The change in Spanish policy caused tensions between Madrid and Algiers, with Algeria recalling its ambassador to Spain and denouncing the newfound Spanish support for Morocco as a “betrayal of the Sahrawi people.”.
Madrid relies heavily on Algerian oil, and many observers have raised the possibility of Algeria rescinding its gas deal with Spain in retaliation for the country’s endorsement of Morocco’s autonomy initiative for the Sahara.
Other analysts have maintained, however, that Algeria cannot end its gas contract with the Spanish government since the current deal between the two countries is valid until 2030.
In recent weeks, the US has been reported to have reached out to Algeria to help alleviate the gas crisis the Ukraine-Russia crisis has caused in Europe.
When asked whether Algiers can fulfill oil demand in the rest of Europe amid the ongoing war in Ukraine, Hakkar said that Sonatrach’s current capacity cannot replace Russian gas.
Since Spain’s change of stance regarding the Sahara dispute, several other Spanish and European political figures have come out in support of Morocco’s plan.
Spanish Prime Minister Pedro Sanchez, who is expected to visit Morocco soon, recently explained the reasons for Spain’s endorsement of Rabat’s position by describing Morocco’s Autonomy Plan as the most sensible road to a peaceful resolution.
Read Also: Western Sahara: Algeria Handed Morocco Spain’s Support on a Silver Platter
