Algerian oil and gas company to review tariffs with international customers – Middle East Monitor

Algeria’s national oil and gas company, Sonatrach, said yesterday it would review gas prices with all of its customers in light of rising international prices, Anadolu reported.

This came during a press conference held by Chief Executive Toufik Hakkar who said the review was not targeting a single company or a single country.

Regarding Spain’s re-export of gas to Morocco in reverse flow via the Gazoduc Maghreb-Europe (GME) gas pipeline, Hakkar indicated that agreements with Sonatrach’s customers stipulate that they must inform the company of any other destination. of its products.

Spain and Morocco agreed earlier this year to consider using the GME pipeline for the reverse flow to the North African country, with gas expected to come from the global LNG market.

On November 1, Algeria, which broke diplomatic relations with Morocco, stopped supplying natural gas to its neighbor via the GME gas pipeline.

Algeria now supplies Spain through the Medgaz submarine gas pipeline with an annual capacity of 8 billion cubic meters. Under the previous agreement, Rabat received royalties worth 0.5 billion cubic meters of gas, which represented half of the country’s consumption.

Hakkar said Sonatrach has the right to share interest earned through the re-export of its products to a third party. However, he said, there was no evidence that Sonatrach gas was re-exported.

Meanwhile, Hakkar revealed that Algeria’s oil and gas revenues reached $21.5 billion in the first five months of 2022, up from $12.6 billion in the same period last year.

Spain accuses Algeria of severing trade relations amid diplomatic crisis

Edward N. Arrington