Despite the termination, Algeria will continue to supply natural gas to the Spanish state through the Mezgaz pipeline.
The Algerian Presidency has decided do not renew the contract for the use of Maghreb-Europe gas pipeline, which transports natural gas to Spain through Morocco, after the breakdown of diplomatic relations between the two African countries at the end of the summer.
The Algerian Presidency has assured that, “taking into account the aggressive practices of the Kingdom of Morocco towards Algeria, the President of the Republic ordered the national company Sonatrak to cease the commercial relationship with the Moroccan company and the non-renewal of the contract” .
Despite the termination, Algeria will continue to supply natural gas to the Spanish State through the Mezgaz gas pipeline, with a delivery schedule that both countries have yet to define.
Inaugurated in 1996 with the aim of developing economic integration in the Maghreb, the Maghreb-Europe gas pipeline provided Morocco with about 50 to 200 million dollars (from 43 to 173 million euros) a year for using its territory.
The agreement also allowed Morocco to extract between 800 and 1 billion cubic meters of gas per year, to produce 10% of the country’s electricity.
The Government of Algeria announced in August the severance of diplomatic relations with Morocco, alleging a host of circumstances, among which he cited the lack of progress in resolving the dispute over Western Sahara, in which Algiers is an ally of the Polisario Front.
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