Algeria uses closure of GME gas pipeline to pressure Morocco

The logo of the Algerian state-owned company Sonatrach in Algiers, November 25, 2019 © Ramzi Boudina / REUTERS

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The Algerian presidency "

 ordered 

" Sunday, October 31 to the public group Sonatrach not to renew the gas pipeline contract passing through Morocco and supplying Spain with gas.

A statement broadcast by national television specifies that it is "

 in view of the hostile practices of the

neighboring

kingdom 

".

Algeria had made no secret in recent weeks of its intention not to extend the contract for the use of the Gaz Maghreb Europe (GME) pipeline.

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The Algerian oil and gas company, Sonatrach, on Sunday October 31st at midnight ceased its gas deliveries to Spain and Portugal which pass through Morocco.

This decision follows the ongoing crisis between Rabat and Algiers.

In August, Algeria had already severed its diplomatic relations with Morocco because of the deep differences on the question of Western Sahara and on the normalization of relations between Rabat and Israel.

An insignificant impact

 ", according to Rabat

Since 1996, the Gaz Maghreb Europe (GME) pipeline has routed around 10 billion m3 of natural gas per year to Spain and Portugal.

In return, Rabat received annually nearly one billion cubic meters of natural gas, which represents 97% of its needs. 

Half were rights of way paid in kind, the other half was gas bought at a favorable price.

According to a Moroccan expert, the royalty for the transit of Algerian gas on Moroccan territory brought in the equivalent of $ 50 million in 2020, collected in kind.

From now on,

Algerian gas deliveries to Spain

will be made exclusively via the Medgaz submarine gas pipeline launched in 2011.

Morocco asserts that this decision "

 will have an insignificant immediate impact on the performance of the national electricity system 

".

Rabat claims to study sustainable alternatives, in the medium and long term.

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