Spain Rushes to Algeria in a Scramble for Gas Amid Energy Crisis

Spain is moving to secure additional gas from Algeria as energy markets tighten following the Iran-linked disruptions, underscoring a strategic shift toward reliable regional suppliers.

Spanish Foreign Minister Jose Manuel Albares met Algerian President Abdelmadjid Tebboune in Algiers Thursday, signaling efforts to deepen energy cooperation. Talks focused on increasing volumes of natural gas amid volatility linked to the Middle East conflict.

“We have talked about there being a greater volume (of gas),” Albares said, adding discussions covered “the context of the gas market with the war in the Middle East.”

Two sources told Reuters that flows through the Medgaz pipeline could rise by as much as 10%. The subsea link is central to Spain’s imports, with Algerian gas accounting for more than 29% of supply in the first two months of the year, according to Enagas.

Naturgy, a key Spanish utility, holds contracts for around 5 billion cubic metres per year with Algeria’s Sonatrach. The Algerian state firm controls 51% of Medgaz and holds about a 4% stake in Naturgy, reinforcing mutual dependency.

Albares emphasized political alignment alongside commercial ties. “Algeria, our first gas supplier, is a strategic, reliable, and steady partner,” he said. He added that “Spain and Algeria are friendly countries and strategic partners in the Mediterranean.”

He also noted that “the constant dialogue that we are strengthening today is for the benefit of our two peoples,” framing the talks as part of a broader effort to stabilize the region’s energy landscape.

The war on Iran has disrupted flows through the Strait of Hormuz, prompting European states to diversify supply sources. Italy has also approached Algeria for additional gas, with Prime Minister Giorgia Meloni raising the issue during a visit to Algiers.

Spanish utility executives have signaled similar intentions. Naturgy CEO Francisco Reynes said the company aims to strengthen ties with Sonatrach as market volatility increases.

The shift reflects intensifying competition for stable gas supplies across Europe. With global markets unsettled, Algeria’s role as a nearby supplier with existing infrastructure is gaining importance.