Finance
Algeria and Spain in Talks to Increase Gas Supply
Published by Global Banking & Finance Review®
Posted on March 26, 2026
2 min readLast updated: March 26, 2026
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Spain and Algeria are negotiating to boost natural gas supplies via the Medgaz pipeline by up to 10%, amid heightened energy volatility from Middle East tensions, as Spain seeks to secure additional volumes from its key supplier.
Algeria and Spain in Negotiations to Expand Medgaz Gas Supply Amid Volatile Markets
Negotiations and Market Context
By Pietro Lombardi and Marwa Rashad
Talks Between Spain and Algeria
MADRID, March 26 (Reuters) - Spain and Algeria are in talks to increase the supply of natural gas from Algeria, Spanish Foreign Minister Jose Manuel Albares said on Thursday after meeting Algerian President Abdelmadjid Tebboune and members of the government in Algiers.
"We have talked about there being a greater volume (of gas). We spoke about the context of the gas market with the war in the Middle East," Albares told reporters in Algiers.
Potential Increase via Medgaz Pipeline
The countries could increase the supply of natural gas via the Medgaz pipeline from Algeria by as much as 10%, two sources familiar with the matter told Reuters.
A spokesperson for Spain's Foreign Ministry declined to comment, pointing to Albares's comments.
Impact of Global Events on Gas Supply
The Iran conflict has upended energy markets and increased volatility, leading some to look elsewhere for their gas. Spanish power utility Naturgy's CEO Francisco Reynes said this week the company wanted to strengthen its relationship with its Algerian supplier and shareholder Sonatrach.
Naturgy and Sonatrach Partnership
Naturgy has gas contracts with the Algerian state oil and gas company for about 5 billion cubic metres per year, according to figures the Spanish company gave to the market in 2022.
Algerian Gas in Spain’s Energy Mix
Algerian gas made up more than 29% of Spain's total gas imports in the first two months of the year, according to data from Spanish gas grid operator Enagas.
It comes via the Medgaz pipeline, in which Naturgy is a minority partner and Sonatrach holds a 51% stake. Sonatrach also has a stake of about 4% in Naturgy.
Broader European Interest in Algerian Gas
Other countries are also asking Algeria for more gas in the face of disruption caused by the conflict in the Middle East.
Italy’s Request for Increased Supply
Italian Prime Minister Giorgia Meloni said she hoped Algeria would send more gas to her country during a visit to Algiers this week.
(Reporting by Pietro Lombardi, Marwa Rashad and Emma Pinedo; Editing by Charlie Devereux, Alison Williams and Nick Zieminski)
Key Takeaways
- •Spain’s Foreign Minister confirmed talks in Algiers aimed at increasing Algerian gas volumes by up to 10%, citing the war in the Middle East as a destabilizing factor in global markets (elpais.com).
- •Medgaz pipeline currently moves about 10.5 bcm/year (≈ 32 million m3/day capacity), operating near full capacity (~28 million m3/day), limiting room for immediate increases without technical upgrades (elpais.com).
- •In 2025, Algeria was Spain’s top gas supplier, delivering 34.6% of imports (~128,502 GWh), ahead of the U.S.; Spain is now urging Medgaz to operate at full capacity rather than reopening closed Maghreb-Europe pipeline (elpais.com).
References
Frequently Asked Questions about Algeria and Spain in talks to increase gas supply
1What are Algeria and Spain discussing regarding gas supply?
Algeria and Spain are in talks to increase the supply of natural gas through the Medgaz pipeline.
2How much could the gas supply from Algeria to Spain increase?
The supply via the Medgaz pipeline could increase by as much as 10%, according to sources.
3Why is there a need to increase gas imports from Algeria?
Volatility from the Middle East conflict is impacting energy markets, increasing demand for reliable gas sources like Algeria.
4What role does Naturgy play in Algeria’s gas exports to Spain?
Naturgy is a minority partner in the Medgaz pipeline and has contracts for about 5 billion cubic metres of Algerian gas annually.
5Are other countries seeking more Algerian gas besides Spain?
Yes, Italy has also expressed interest in increasing its gas imports from Algeria amid regional disruptions.
