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Morocco Emerges as Major Buyer of Gas from Spain Two Years After Reopening Pipeline

Saturday 22 June 2024 - 11:33

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Rabat's Strategic Move: How Morocco Became a Key Customer for Spanish Gas

In a significant turn of events, the Spanish government's decision to reopen the Maghreb-Europe gas pipeline two years ago, reversing its flow to supply gas to Morocco, has redefined the energy dynamics in the region. This strategic move followed Algeria's abrupt closure of the pipeline, and since then, Morocco has quickly ascended to become one of Spain's top gas customers.

Morocco's Rapid Ascent in Gas Imports

According to records from Enagás, the operator of Spain’s gas system and major pipelines, along with the Corporation of Strategic Reserves of Petroleum Products (Cores), Morocco's utilization of the pipeline has surged. This January, for the first time, Morocco became the leading destination for Spanish gas exports, accounting for a remarkable 28% of all monthly exports, as reported by the Spanish news agency EPE.

Overall, shipments to Morocco have constituted 16.5% of Spain's natural gas re-exports this year, a notable increase from the 12.5% share of the previous year. This is a significant jump from the approximately 5% recorded in the latter half of 2022, when the renewed flow between Spain and Morocco commenced.

Pushing the Pipeline to Its Limits

The Maghreb-Europe pipeline has been operating near its maximum capacity of 960 gigawatt-hours (GWh) per month. Several months have seen utilization rates surpassing 90% of this capacity, with August of last year nearing a record high of 958 GWh sent to Morocco.

Spain's Role in the Gas Supply Chain

It is important to note that Spain is not directly selling gas to Morocco. Instead, Spain serves as a crucial intermediary. Ships carrying gas purchased by Morocco from various suppliers dock at Spain's regasification plants. From there, the gas is transported through the Tarifa pipeline to Morocco. This process is meticulously monitored to ensure compliance with Algerian regulations, which stipulate that no Algerian gas molecules are included in these shipments.

Diplomatic Tensions and Their Implications

Spain's decision to assist Morocco with its gas supply has exacerbated existing diplomatic tensions with Algeria, particularly following Spain's shift in stance on the Sahara. Madrid's support for Morocco’s Autonomy Plan for Sahara has not been well received in Algiers.

In retaliation, Algeria has imposed a blockade on commercial relations with Spain, although it has partially relaxed this stance while excluding its gas sales from the boycott. Furthermore, Algeria has warned of terminating gas supply contracts with Spanish companies if it suspects any of its gas is being resold to Morocco, with which it has also severed diplomatic ties over the Sahara issue.

The Spanish government has staunchly denied any possibility of Algerian gas being rerouted to Morocco and has implemented a special monitoring plan to prevent such occurrences.

The reopening of the Maghreb-Europe pipeline has not only cemented Morocco as a significant player in Spain's gas export market but has also underscored the intricate web of geopolitical and diplomatic relations in the region. As Spain navigates its role in this complex scenario, the implications for regional energy politics and international relations continue to unfold.