Case: Sanchez is in talks with Debone to reopen GME

The head of the Spanish government, Pedro Sanchez, is said to be in talks with Algerian President Abdelmadjid Tebboune. The agreement to “allow” Morocco by Algeria to reopen the GME gas pipeline has not been renewed. Algeria seeks to supply gas to Europe by taking advantage of the current geopolitical crisis.

While the hydrocarbon crisis has continued to plague global markets and national economies since the beginning of the Russo-Ukrainian conflict, Europeans are seeking to address Russia’s gas shortages.

The countries of the old continent naturally turn to Algeria, especially due to its geographical proximity, which is analogous to low costs. But this choice was made difficult by Europeans as it decided on October 31 not to renew the contract for the GME gas pipeline passing through Morocco due to enmity with the Algerian state.

Following the first telephone exchange between Pedro Sanchez and Abdelmadjid Tebboune on March 6 aimed at stabilizing Spain’s Algerian gas supply, relations between the two countries continued at the highest level, the Spanish MERCA2 news site quoted Spanish ministry sources as saying. Energy.

Citing these sources, the site confirms that this phone conversation allowed them to remain “confident” and “gave them reason to believe a change in Algeria’s position on GME”.

Until now, the government of Abdelmajid Tebboune has opposed the possibility of Madrid and Rabat reaching an agreement to reopen a section of the Moroccan overland gas pipeline and to carry gas from Spain to Morocco.

But in the face of the current geopolitical situation and the promises of Algerian leaders that Algeria is a “reliable” partner, the demand for gas among Europeans is becoming more and more pressing, and the solution to supply to the old continent is to reopen GME gas. The pipeline that connects Algeria with Europe.

Gas prices are currently rising due to sanctions on Russia, which accounts for 20% of global demand. Importers do not have a lot of choice before, but would prefer to avoid American gas in its liquefied form (LNG), which is 40% more expensive.

At this point, the head of the Spanish government, welcoming the leader of the Algerians-funded Sahrawi separatists against Morocco, will negotiate with Abdelmadzit Debn to return to good practices, as Pedro Sanchez gave him overwhelming support last spring. His diplomatic relations with Rabat. With Madrid’s friendly gesture, relations are still sealed.

Communications between Spain and Algeria are currently underway, thus bringing the Maghreb-Europe (GME) gas back to the old continent, ”the Spanish site said.

“The key question here is whether Algeria will decide to put aside its eternal conflict with the Allied kingdom to become a key partner in the new geopolitical and economic situation emerging in the wake of the Russian military intervention in Ukraine. With the consent of the Algerian president, a change in this approach is already possible, ”Spanish sources advised. MERCA2.

The fact that GME no longer works is very important for Spain and Europe because it makes it possible to regulate gas flow between the two continents. With a length of 1,400 km, 540 of which cross Morocco, GME contributes between 6,000 and 8,000 million cubic meters of gas annually to Spain.

The pipeline accounted for only 25% of Spanish gas imports, passing through Morocco via the Strait of Gibraltar and supplying gas to the Spanish terminal at Cadiz.

Today, the only gas pipeline connecting Algeria with Spain, the Metcos and its capacity is less than GME. While the Algerian authorities refuse to reopen the GME, it is bypassing Morocco, so for the sole reason that it does not want to allow Algerian gas to benefit, Algeria is currently trying to strengthen its supply of metcas. Use GME. .