Finance
Spain, Algeria in Talks to Increase Pipeline Gas Supply by up to 10%, Sources Say
Published by Global Banking & Finance Review®
Posted on March 26, 2026
1 min readLast updated: March 26, 2026
Add as preferred source on GoogleQuick Summary
Spain and Algeria are negotiating to boost natural gas flows via the Medgaz pipeline by up to 10%, leveraging about 1 bcm of additional annual capacity; a preliminary deal may be struck during Spanish FM José Manuel Albares’s visit to Algiers this week, sources say.
Spain, Algeria in Talks to Raise Pipeline Gas Supply by Up to 10%
Negotiations to Boost Medgaz Pipeline Capacity
By Pietro Lombardi and Marwa Rashad
Current Status of Talks
MADRID, March 26 (Reuters) - Spain and Algeria are in talks to increase the supply of natural gas via the Medgaz pipeline from Algeria by as much as 10%, two sources familiar with the matter said.
Advanced Stage of Negotiations
Talks are in advanced stage, one of the sources said, adding that a preliminary agreement may be reached during Spanish Foreign Minister Jose Manuel Albares's visit to Algiers this week.
Pipeline Capacity and Potential Increase
The increase would be possible as the pipeline between the countries has capacity to increase the flow of gas by around 1 billion cubic metres (bcm) per year, they said.
(Reporting by Pietro Lombardi and Marwa Rashad; Editing by Charlie Devereux)
Key Takeaways
- •Medgaz, which currently transports around 10–10.5 bcm/year of gas from Algeria to Spain, has additional headroom of roughly 1 bcm/year to allow a ~10% increase.(media.realinstitutoelcano.org)
- •A preliminary agreement on the supply increase is expected during Foreign Minister Albares’s current visit to Algiers, signaling deepening energy ties amid diplomatic rapprochement.(elpais.com)
- •Algeria remains a pivotal supplier—providing nearly 30% of Spain’s gas imports in early 2026—and the Medgaz expansion enhances Spain’s energy security as reliance on alternative routes like Maghreb‑Europe pipeline has ceased.(elpais.com)
References
Frequently Asked Questions about Spain, Algeria in talks to increase pipeline gas supply by up to 10%, sources say
1What countries are involved in the Medgaz pipeline gas supply negotiations?
Spain and Algeria are involved in talks to increase gas supply through the Medgaz pipeline.
2By how much could the Medgaz pipeline gas supply increase?
The supply could increase by up to 10%, which is about 1 billion cubic metres per year.
3Is there a timeline for the gas supply agreement between Spain and Algeria?
A preliminary agreement may be reached during the Spanish Foreign Minister's visit to Algiers this week.
4Who is reportedly leading the negotiations on behalf of Spain?
Spanish Foreign Minister Jose Manuel Albares is leading the talks.
