In 2024, Algeria has established itself as the main supplier of natural and liquefied gas to Spain, thus strengthening its strategic role in the European energy market. With an impressive 38.5% share of Spanish gas imports, Algeria far outpaces its competitors, including Russia and the United States. This success is the result of a combination of economic, political and logistical factors that deserve in-depth analysis.
According to figures published by the Spanish agency Enagasspecialized in the management of energy infrastructure, Algeria has exported approximately 131’202 GWh of gas to Spain in 2024. This quantity represents a significant increase compared to previous years, confirming the solidity of energy relations between the two countries.
Algerian gas is transported mainly by the pipeline Medgazdirectly linking the Algerian coast to Spain. This gas pipeline, which has been modernized and whose capacity has been increased in recent years, plays a key role in this performance. At the same time, cargoes of liquefied natural gas (LNG) have also helped meet Spain’s growing energy needs.
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Why such an explosion in exports?
Several factors explain this explosion of Algerian gas exports to Spain in 2024:
- A favorable geopolitical context
Ongoing tensions between the European Union and Russia have prompted many European countries, including Spain, to diversify their sources of energy supply. Algeria, as a close neighbor and historical partner, has naturally established itself as a reliable alternative. - The competitiveness of Algerian gas
Thanks to its relatively low production costs and geographical proximity to Spain, Algerian gas benefits from a significant competitive advantage. In addition, the cooperation agreements between Algiers and Madrid have made it possible to maintain attractive prices, even in a context of volatility in global energy markets. - Infrastructure modernization
The Medgaz pipeline has seen its capacity increase in recent years, reaching nearly 10 billion cubic meters annually. This reliable and efficient infrastructure guarantees continuous and secure supply for Spain, reinforcing the confidence of the Spanish authorities in their Algerian partner. - Increased demand in Spain
In 2024, Spain will see a significant increase in energy consumption, notably due to a strong economic recovery and a transition to less polluting energy sources. Gas, considered an intermediate solution between fossil and renewable energies, played an important role in this transition.
Algeria, a strategic energy partner
This performance strengthens Algeria’s position as a key player on the global energy scene, but it also underlines the strategic importance of its relations with Spain. For decades, the two countries have maintained close economic ties, particularly in the field of hydrocarbons. These links are today consolidated by current geopolitical issues.
However, this success is not limited to economic or commercial aspects. It also reflects Algeria’s desire to play a major role in securing Europe’s energy supply. This ambition is part of a broader vision, where the country aims to diversify its exports and strengthen its international relations.
Algeria must maintain its dominant position
Although the 2024 results are impressive, Algeria faces several challenges to maintain its dominant position in the Spanish and European market:
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- Increase your production capacities : To meet growing demand, additional investments in gas exploration and production will be required.
- Strengthen its infrastructure : Although Medgaz is a strategic asset, other infrastructures, notably liquefaction and storage, could be developed to diversify delivery methods.
- Overcoming international competition : The United States and other exporting countries, such as Qatar, continue to seek to gain market share in Europe. Algeria will have to maintain competitive prices while guaranteeing the quality and reliability of its gas.
- Getting involved in the energy transition : In the medium and long term, Europe is moving towards reducing its dependence on fossil fuels. Algeria will need to adapt its strategy to include renewable energy in its exports, while leveraging its expertise in hydrocarbons.
A pivotal year for Algerian gas
The year 2024 therefore marks an important milestone for Algeria in its quest for leadership in the European energy market. By becoming Spain’s main gas supplier, the country demonstrates its ability to meet the growing needs of its partners while consolidating its strategic position.
If the challenges are numerous, the opportunities are just as many. With a clear vision, wise investments and strengthened cooperation with its partners, Algeria is well positioned to continue to play a leading role in the region’s energy future.
