Algeria suffers huge financial loss after Maghreb-Europe gas pipeline closure

By Le360 (with MAP) 03/08/2022 at 7:36 pm.

The Maghreb-Europe gas pipeline stopped transporting Algerian gas from Moroccan territory to Spain at midnight on October 31, 2021.

© Copyright: DR

The closure of Algeria’s Maghreb-Europe (GME) gas pipeline has inflicted heavy financial losses on it, Russian federal news agency FAN reported on Monday.

The same source clarifies that Algeria has faced technical problems related to its plans to expand the capacity of the Medgaz gas pipeline, which has increased demand and the cost of transportation due to the crisis. The energy crisis is worsening in Spain and across Europe.

The Russian agency also reports that Spain accuses Algeria of not honoring its promise to supply gas in sufficient quantities, noting that Algiers, despite its obligation to ensure exports of the same quantity, currently It is forced to double the number of LNG tankers in the U.S. If it had kept the Maghreb-Europe gas pipeline (GME) running, it would have done without.

Since the closure of GME, Spanish authorities have reported recurring disruptions in the supply chain through replacement solutions offered by Algiers.

Spain is now turning to other suppliers, particularly the United States, in order not to tie its economy to an unreliable source of energy, especially in the context of rising prices and associated supply difficulties. For the Russian-Ukrainian conflict.

by Le360 (with MAP)

You May Also Like

About the Author: Hanley Mallin

Internet geek. Wannabe bacon enthusiast. Web trailblazer. Music maven. Entrepreneur. Pop culture fan.

Leave a Reply

Your email address will not be published.