Madrid – As the conflict in the Middle East continues to roil global energy markets, Spain is reinforcing its energy partnership with Algeria, a move to secure a critical supply of natural gas. Algeria currently stands as Spain’s primary source of natural gas, a relationship that has become increasingly vital in light of geopolitical instability and fluctuating energy prices.
Between January and December 2025, 34.5% of the natural gas reaching Spain – totaling 128,504 GWh – originated in Algeria. This year, Algerian gas already accounts for 29.2% of the country’s fossil fuel mix, representing 19,243 GWh. The “reinforcement” of this partnership translates to an expansion of gas volumes flowing from Algeria to Spain. A similar increase in capacity occurred in 2022, following Russia’s invasion of Ukraine and subsequent Western sanctions, when the capacity of the Maghreb pipeline connecting Spain and Algeria was expanded from 8 billion cubic meters to 10 billion cubic meters.
“Algeria is a stable, reliable and consistent supplier of gas. For three years, it has been the first provider of natural gas to Spain, and I have acknowledged this to the Algerian President [Abdelmadjid] Tebboune. Today, we have agreed to strengthen this strategic energy partnership,” stated Spanish Foreign Minister José Manuel Albares during a recent press conference. Albares began an official visit to Algeria on Thursday, with further meetings scheduled for Friday. These include discussions with the Minister of Hydrocarbons and Mines, Mohamed Arkab, who oversees the activities of the state-owned energy company Sonatrach, regarding the potential for increased gas deliveries to Spain. “We discussed increasing the volume of gas transfers and the context of the energy market in these times of war in the Middle East,” Albares added.
Sonatrach plays a pivotal role in the flow of Algerian gas to Spain. The company holds a 51% stake in the Maghreb pipeline (with Naturgy owning the remaining 49%) and controls more than 4% of Naturgy’s share capital – the Spanish company that purchases the most gas from Algeria and has maintained a commercial relationship for over 40 years. Currently, Algerian natural gas reaches Spain not only via the pipeline but also through liquefied natural gas (LNG) tankers. Increasing LNG shipments is considered the most viable path to significantly increase Algerian gas imports, given that the pipeline is operating near its maximum capacity, according to sector sources.
Competition with Italy?
Spain isn’t the only nation seeking to bolster its energy ties with Algeria. Italian Prime Minister Giorgia Meloni also traveled to Algeria this week to secure gas supplies. This competition highlights the broader scramble for energy resources as nations seek to diversify their sources and ensure stable supplies. The situation isn’t solely about the destination country’s capacity to receive gas, but also Algeria’s ability to increase production and the pricing of that gas. Energy companies typically sign long-term contracts to mitigate price volatility and avoid the spot market, where costs can fluctuate dramatically based on supply and demand, as seen during previous energy crises.
Although Minister Albares emphasized an “excellent” relationship with Algeria, describing it as a “friendly country and strategic partner with whom we maintain constant dialogue and cooperation,” relations haven’t always been smooth. Tensions arose following a shift in the Spanish government’s position on Western Sahara, leading to an unprecedented diplomatic crisis. Algeria responded by suspending its treaty of friendship with Spain. Albares has since asserted that the agreement remains in effect and announced upcoming high-level meetings to further strengthen ties.
The situation underscores the complex interplay between energy security, geopolitical considerations, and diplomatic relations. Spain’s move to reinforce its partnership with Algeria is a clear indication of its commitment to diversifying its energy sources and mitigating the risks associated with the ongoing conflict in the Middle East. For consumers, this partnership aims to provide a degree of stability in a volatile market, though the ultimate impact on prices will depend on broader global energy trends.
The reliance on a single supplier, even a historically reliable one like Algeria, also presents potential vulnerabilities. Diversification remains a key strategy for Spain, and the country continues to explore other sources of natural gas, including LNG from the United States and other global suppliers. However, the logistical and infrastructural challenges of transitioning away from Algerian gas are significant, making the existing partnership a crucial component of Spain’s energy security strategy.
The ongoing situation also highlights the broader European effort to reduce dependence on Russian energy. The expansion of the Maghreb pipeline in 2022 was a direct response to the require to locate alternative sources following the outbreak of the war in Ukraine. This trend is likely to continue as European nations seek to build more resilient and diversified energy systems.
Looking ahead, the relationship between Spain and Algeria will be closely watched by energy markets and policymakers alike. The success of this partnership will depend on continued dialogue, mutual trust, and a shared commitment to ensuring a stable and reliable energy supply for both countries.
Next Steps: Minister Albares will continue his visit to Algeria on Friday, with further discussions expected regarding increased gas supplies and the broader energy market context. Updates from the Spanish Ministry of Foreign Affairs and Sonatrach are anticipated in the coming weeks.
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