Algeria tightened the pressure on Spain yet again, reacting to what it described as an unfair shift in Madrid’s stance on Western Sahara by backing the autonomy plan favored by Morocco. Initially, Algiers signaled that the Treaty of Friendship, Good Neighborliness and Cooperation with Spain had been breached, and within hours, around midnight, it halted its banking activities related to commercial flows to and from Spain.
The Spanish government is actively assessing the Algerian move and its practical implications, especially for cross-border trade in natural gas. Madrid reiterates its aim for improved relations with Algeria but remains firm in defending Spanish interests and ensuring energy security for its economy.
“A calm and constructive response will be offered, yet it will be firm in safeguarding Spain’s interests and the interests of Spanish companies,” stated Foreign Minister José Manuel Albares. He noted that energy firms with direct ties to Algeria have conveyed that the gas flow to Spain remains uninterrupted and that there are no immediate obstacles to maintaining supply through current channels.
Historically, Algeria has been the principal gas exporter to Spain. Five decades passed since the first link in the gas corridor was established, a relationship that endured until comparatively recently. Since the start of the year, the United States has displaced Algeria as the leading supplier to certain markets, following Algeria’s decision to close one of the pipelines that traverses Morocco. In recent years, Algerian gas accounted for more than 40% of Spain’s imports, but in the latest months the share has fallen to around 25%.
“Right now there are no issues with gas delivery,” Albares affirmed. He recalled the president of Algeria’s April 24 pledge to guarantee gas supplies to Spain, reinforcing the impression that the current measures are temporary and manageable for the energy system.
As the government weighs the economic repercussions of Algeria’s actions, it insists that existing supply contracts and energy shipments do not present risk. Finance Minister María Jesús Montero underscored this point while also acknowledging that, if Algeria does not honor its contractual commitments, affected Spanish companies could pursue legal recourse to defend their interests.
The commercial ties connecting Sonatrach, the Algerian gas giant, with Spanish buyers are rooted in firm contractual obligations. Teresa Ribera, vice president and minister for the Ecological Transition, told Onda Cero that she remains confident the two sides will continue working together. If a resolution cannot be reached through diplomatic channels, she suggested, arbitration or judicial avenues could be explored to settle disputes without jeopardizing the broader bilateral relationship.
In a period marked by a global energy crunch and the destabilizing ripple effects of Russia’s war in Ukraine, Algeria has proposed keeping prices stable for most gas-importing countries. Spain, however, faces a different calculus as the government contemplates possible price recalibration for gas purchases arranged through Algerian suppliers. This stance has coincided with negotiations between Sonatrach and Spain’s Naturgy over terms for the coming three years, signaling a potential shift in pricing for the near term.
Industry insiders describe the situation as an ordinary review of long-standing contracts that are typically renegotiated every few years. Yet the ongoing political tensions with Madrid have intensified these talks, drawing heightened attention from global gas markets that are already volatile and driving price fluctuations across Europe. The overarching concern remains how any renegotiation might ripple through Spain’s energy affordability and reliability, especially during a period of elevated energy costs.
Observers note that while the energy landscape features multiple suppliers and routes, the current dispute underscores the importance of diversified energy sources and robust contractual frameworks. The Spanish energy sector continues to pursue resilience through diversification, while monitoring how diplomatic developments influence commercial terms and access to gas supplies across the region. This evolving scenario is being watched closely by policymakers, industry executives, and international partners who seek to ensure stable energy provisioning amid geopolitical shifts. (Source: Reuters and national briefings)
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