HEALTHPLAN MAGAZINE

With energy costs already at record levels here in Spain, many are worried that the conflict that is unfolding in Ukraine will cause a further hike in the cost of bills.

However, according to Spanish government minister Teresa Ribera, Algeria is ready to distribute more natural gas to Spain and other EU Member States in the event that supplies from Russia are disrupted.

With the Russian invasion last week sending shockwaves around the world, the EU is bracing itself for the possibility that the supply for Russia will be halted in retaliation for the sanctions that have now been imposed on the country’s banking sector, airlines and sports teams.

Ribera, who is the country’s Ecological Transition Minister and in charge of Spain’s energy policy told TVE television on Tuesday that she had been assured by the Algerian government that “if we or our European partners need more gas through Spain, Italy or via ships they are willing to provide it.”

Chief Executive Officer of the state-run energy company Sonatrach said on Monday that the firm is "a reliable gas supplier for the European market and is willing to support its long term partners in the event of difficult situations".

Hakkar said the company would pump any additional gas that was needed via Italy and then on to the EU via the Tansmed pipeline linking Algeria to Italy.

However, he did stress that any additional supplies of liquid natural gas (LNG) would be dependent on the firm's “contractual engagements” and the availability of excess volumes.

Meanwhile, Former Algerian energy minister Abdelmajid Attar said that "Algeria exports a maximum of 22 billion cubic metres (of gas) via the Trans-med pipeline", which would leave a capacity of 10 billion cubic metres.

However, he insisted that although Algeria would be able to help to alleviate any supply problems, the country would not be able to "compensate for the decline in Russian gas supply", stating that it can offer a maximum of two or three million additional cubic metres.

The energy company is already a big provider of gas to the EU accounting for 11 per cent of all European imports. The African nation is also Spain’s biggest supplier accounting for 43% of all gas sent to Spain in 2021.

The U.S. and Nigeria were Spain’s other main suppliers of the fuel, with shares of 14% and 11% respectively.

Spain’s Energy Diversification

Ribera, who attended a meeting with the Energy Council of the European Union, which was held today in Brussels, said that the war in Ukraine had highlighted just how dependent the EU had become on Russian gas supplies.

She stressed that Europe needed to diversify the sources of its energy.

"We support the French Presidency of the EU in the need to diversify and accelerate a solvent dialogue with gas and oil suppliers that guarantees a stable and affordable supply", she said.

Ribera insisted that the best way of reducing Europe's energy supply issues was to "accelerate investment in energy transition, in renewables, in energy savings and efficiency, and in storage technologies".

"We are seeing an immense fragility in Europe in terms of energy as a result of a very high dependence on a single gas supplier - Ribera pointed out on her arrival at the Council - and the solution lies in accelerating the energy transition to reduce dependence, diversifying suppliers, boosting savings and efficiency, accelerating renewables, facilitating a fluid dialogue with other gas suppliers, seeking maximum cooperation at a European level and applying measures with immediate effect.

"That is why we welcome the Commission's announcement to present a new Toolbox Communication, with extraordinary measures that should be applied quickly, as soon as possible", she added.

In an attempt to prevent Russia’s invasion of Ukraine pushing the already record energy costs higher, Ribera along with the country’s Economy Minister Nadia Calvino have proposed to the EU to decouple Spain’s gas from electricity costs which would include a price cap for power generated from the fuel.
EU leaders are keen to move away from their reliance on Russian gas which accounts for around 40% of all gas supplies into the bloc.

Source

https://www.lamoncloa.gob.es/lang/en/gobierno/news/Paginas/2022/20220228_energy-measures.aspx
https://english.alaraby.co.uk/news/algeria-ready-supply-eu-gas-amid-ukraine-crisis
https://www.bnnbloomberg.ca/spain-says-algeria-s-ready-to-send-more-gas-to-europe-1.1730503

Image Credit: La Moncloa