Spain defends itself against Russia and Algeria with more gas purchases from USA and Africa

The alternative is to trigger the purchase of liquefied natural gas (LNG) by ship from the United States and African countries such as Nigeria or Egypt, with data corresponding to April, according to Enagás’ latest monthly newsletter.

Spain wants ensure your energy security In the face of doubts about the continuity of gas supplies from Russia and the decline in purchases from Algeria following the closure of one of the gas pipelines last October, and Spain’s shift over the Sahara, the diplomatic conflict led to Algeria threatening to terminate contracts.

Spain has so far quadrupled its gas purchases from the US this year and in April, thus confirming itself as the new largest gas supplier after dethroning Algeria in January. Last month, the US concentrated 30.7% of all major gas companies in the country (35.3% in the first four months of the year).

There are also Spanish companies Significantly increased gas imports from other alternative countries in April Africans such as Nigeria (up 40%, accounting for 17% of the total and becoming the third largest supplier) or Egypt (a growth of 171%, accounting for 6% of total gas purchases).

Shopping to Russia

Spain continues to buy gas from Russia with the military occupation of Ukraine ordered by Vladimir Putin. Last month, Russian gas purchases still concentrated 8% of all the country’s imports, making Russia the fourth-largest supplier. In April, Spain recorded Russian gas imports for the equivalent of 3,278 gigawatt hours (GWh), roughly the same as in March. 50% more than in April last year.

In the gas sector, it was underlined that the supply contracts with Russia are long-term and cannot be canceled without penal clauses. natural gas. In any case, it is pointed out from the industry that: These supply contracts with Russia are not extended due to future supply uncertainty.

The European Union began to impose sanctions against Russia, which included the first purchase bans in the energy sector. For now, the ban is limited to coal imports, but Brussels predicts the ban could soon extend to oil and eventually to Russian gas as well. It emphasizes the government and the energy sector. Spain’s dependence on Russian gas is very low and the possibility of purchasing substitutes through other supplier countries will be possible, albeit at higher prices.

Gas purchases from Algeria, historically Spain’s largest supplier, are accumulating six-month decline Since the closure of the gas pipeline that brings products from the North African country through Morocco. In April, imports from Algeria totaled 23% of the total (traditionally over 40%) and fell 35% compared to the same month last year.

The closure of the gas pipeline was the result of diplomatic conflict between Algeria and Morocco on behalf of Western Sahara. And the Spanish Government’s return to the Sahara, its approval of the Rabat autonomy plan, resulted in a diplomatic conflict with Algeria as it renegotiated the increase in the price of gas supplied to Spain. Threats to break contracts if violations are detected By selling gas to Morocco.

Sales to France skyrocketed

After the Russian invasion of Ukraine, gas sales from Spain to France skyrocketed. In the first quarter of the year, gas exports to the French market doubled. Flows skyrocketed and quadrupled in April, according to data from the statistical bulletin of the gas system operator, Enagás.

As Enagás explained at the end of April, the two interconnections between Spain and France are as follows: working at full capacity. The two tubes connecting the two countries, Larrau-Alçay and Irún-Biriatou, have a capacity of 7,000 million cubic meters (7bcm) per year, the equivalent of seven liquefied natural gas (LNG) ships per month.

Putin’s invasion prompted him to seek ways to ensure security of supply and identify alternatives to reduce dependence on Russia. And with that, discussions about the opening of a new gas pipeline between Spain and France via Catalonia and reviving the Midcat project, which was abandoned a few years ago, have also reopened. The Spanish Government shows in favor of reactivating the projectbut provided it is financed with European funds and the tube can also be used to export green hydrogen in the future.