Europe is one of the world’s largest consumer markets for natural gas, and as the war in Ukraine continues, the significant increase in the prices of energy supplies is creating serious concern. This gas shortage in the EU presents a unique opportunity for Algeria to expand its presence and consolidate its position as the most reliable gas supplier, taking advantage of its geographical proximity to Europe. Algeria, the eighth largest gas producer in the world, has 3% of proven world reserves, but its territory is practically unexplored and it is estimated that it has large natural gas deposits yet to be discovered.
The EU cannot completely replace Russian gas imports in the short term, but it is determined to reduce its dependence. An agreement with Algeria would indicate to Russia that there are alternatives. When the businessman Pere Duran i Farell discovered the possibilities of Algeria, in the sixties, few Europeans bet on this country. However, the industrialist opened the doors to privileged relations between Spain and Algeria, multiplying contacts and economic ties, and helping to build the gas pipelines that today transport 70% of Algerian gas production to the European Union.
Spain buys LNG from Algeria, but the gas pipeline link through Morocco was closed last November, after decades of disputes between Algiers and Rabat, mainly over Western Sahara. Furthermore, relations between Algiers and Madrid have cooled since March, when Spain supported the autonomy plan for the Sahara presented by Morocco and rejected by Algeria, Polisario’s main ally.
However, the diplomatic conflict with Spain has acquired a European dimension. Algiers has the opportunity to play a more significant role and become the necessary partner and main gas supplier to Union E.
Spain could supply the rest of Europe with gas through the two gas pipelines that connect it with Algeria: the Durán Farell and the Medgaz. Although it would be necessary to complete the Midcat gas pipeline through the Catalan Pyrenees to convert Spain into a hub country.
There are more than 300 Spanish companies present in various sectors and dozens of projects in Algeria. The two countries have overcome other tensions in recent years, and can aspire to build a strategic neighborhood relationship: economic cooperation is the prelude to political rapprochement. Protecting business relationships and advancing mutual interests will outweigh thorny issues.
The Maghreb is key for Spain and Europe. Failure to act multiplies the risk. A new European approach based on economic cooperation and regional interaction is needed, because a policy focused solely on security or energy cannot be the only option.
