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Date Published: 27/03/2026

Spain turns to Algeria to keep the gas flowing as Middle East conflict squeezes energy supplies

Spain already imports more gas from Algeria than anywhere else, and the government is now pushing to get even more

Spain has struck a deal with Algeria to increase natural gas exports through the Medgaz pipeline as the government moves to protect the country's energy supply against the ongoing disruption caused by the conflict in the Middle East.

Foreign Minister José Manuel Albares confirmed the agreement after travelling to Algiers, where he met with Algerian President Abdelmadjid Tebboune and two of his ministers.

According to Albares, the two countries have agreed to deepen their energy relationship and increase the volume of gas exported to Spain, although the finer details are still being worked out.

The pipeline has the capacity to deliver an additional 500 million to 1 billion cubic metres on top of the 30 to 35 billion cubic metres Spain already imports from Algeria annually, making it by far Spain's biggest gas supplier.

The closure of the Strait of Hormuz as a result of the conflict has sent shockwaves through global energy markets and Spain is clearly keen to shore up alternative supply routes before things get any worse. Algeria's neighbour Italy, which also has energy ties to the country, made a similar move this week.

Spain and Algeria also agreed to look beyond gas, with discussions around potential cooperation on solar and green hydrogen also on the table.

It's worth noting though that while the Spanish government has moved to cut VAT on fuel and electricity to help households cope with rising costs, gas hasn't received the same treatment. In fact, the price of a butane cylinder, which many people across Spain rely on for heating and cooking, went up by 0.7% last week, bringing the new price to €15.58.

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