As energy crisis looms, Spain shields supply of Algerian gas

Spain has launched a diplomatic offensive to preserve its essential stream of Algerian natural gas as souring relations between Algeria and Morocco threaten to disrupt the supply chain

MADRID -- Spain launched a diplomatic offensive to preserve its essential stream of Algerian natural gas Thursday as energy prices across the world skyrocket and souring relations between Algeria and Morocco threaten to disrupt the gas supply chain in North Africa.

In Algeria's latest move to severe commercial and diplomatic ties with the neighboring country, it plans to shut down a pipeline that supplies nearly half of Spain’s imported Algerian natural gas via Morocco. A 25-year distribution agreement ends on Oct. 31.

Algeria has indicated it would continue to supply gas to Spain through a separate pipeline that crosses the Mediterranean Sea and links directly to the Iberian Peninsula, as well as on vessels carrying liquified natural gas, or LNG.

But any disruption is likely to increase costs for Spain. The country's reliance on Algerian gas has grown in recent years and now accounts for half of all its gas imports.