Algeria Hints at Non-Renewal of Contract for Gas Pipeline Crossing Morocco

ALGIERS (Reuters) — Algeria on Thursday hinted at the possibility of ending gas supplies to Morocco in October, two days after cutting diplomatic ties with the Kingdom.

Morocco currently is provided with natural gas through the Maghreb-Europe pipeline that links Algeria to Spain and runs across the Kingdom. The contract for the pipeline expires in October.

Algeria has a second pipeline, Medgaz, that does not cross Morocco, and Energy Minister Mohamed Arkab said it would supply all of Spain's gas supplies.

"The minister affirmed Algeria's total commitment to cover all Spain's natural gas supplies through Medgaz," the energy ministry said in a statement after a meeting between Arkab and the Spanish ambassador.

Medgaz directly links its facilities in the western town of Beni Saf to Almeria, in southeastern Spain, with annual capacity of 8 billion cubic meters, and Arkab said that volume is due to increase.

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