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Algeria will expand the capacity of the Megaz pipeline to Spain by 1/3

The capacity of the Medgaz submarine gas pipeline between Algeria and Spain will increase from 8 bcm/year to 10.7 bcm (+34%) by the end of 2021 with the entry into service of a third turbo compressor. The capacity of the gas pipeline could be increased to 16 bcm/year at a later stage if the Algerian national oil and gas company Sonatrach signs additional long-term natural gas contracts with European customers. In 2020, Algeria exported 8.7 bcm of natural gas via pipelines to Spain, accounting for about a quarter of the country's total gas imports, and 1.3 bcm to Portugal.

Algeria currently delivers natural gas to Spain exclusively through the Medgaz pipeline, which already operates at full capacity, after Algeria decided to abandon the 11.5 bcm/year GME (Gaz Maghreb Europe) gas pipeline crossing Morocco to supply Spain and Portugal, due to tensions with Morocco, in October 2021. For the transit fee, Algeria was giving Morocco a portion of the transported gas (around 1 bcm/year, which represents 90% of the country's gas demand). Morocco had also a gas supply agreement with Sonatrach.