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October 19, 2021

Morocco considers reversing pipeline flow if Algeria cancels supply deal

Morocco has already issued gas import permits considering Algeria would not renew the gas pipeline deal.

By Archana Rani

Morocco is reportedly considering reversing gas pipeline flow if Algeria opts not to renew a supply deal that expires on 31 October 2021.

Reuters reported a senior Moroccan official as saying that the country is discussing with Spain the possibility of reverse flow of the gas pipeline.

Earlier, Algeria has hinted that it would not renew the export gas deal through the 13.5 billion cubic metre-long (bcm) pipeline, which crosses Morocco.

Alternatively, the country was considering expanding the Medgaz pipeline in the Mediterranean.

However, Algerian President Abelmadjid Tebboune said a final decision has not been made regarding the Maghreb-Europe pipeline.

The Maghreb-Europe Gas Pipeline is a system of high-pressure gas pipelines designed to carry natural gas from the wells in Hassi R’Mel, Algeria to Spain and Portugal.

In late August, Algeria snapped diplomatic ties with Morocco due to its alleged ‘hostile actions’.

An undisclosed senior official was quoted by Reuters as saying: “For Morocco, the pipeline is more of a tool for regional cooperation…we will not let it rust.”

According to the official, Morocco is looking to use LNG terminals in Spain to channel gas to the country via the Maghreb-Europe pipeline.

The official added: “This LNG will not compete with Spanish gas supplies. It will be an additional purchase ordered by Morocco which will pay the cost of the transit through Spanish terminals and the pipeline.”

Considering Algeria would not renew the deal for a gas pipeline, Morocco has issued gas import permits, the official noted.

 

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