As war in the Middle East disrupts global energy flows and leaves countries scrambling to replace gas supplies from the Gulf, European governments are turning their attention to a North African supplier with pipelines already linked to the continent: Algeria.
Energy prices jumped sharply this month after Iran struck Qatar’s Ras Laffan facility, the world’s largest liquefied natural gas hub, causing significant damage and disrupting supplies.
European gas prices rose by 35 percent, while tanker traffic through the Strait of Hormuz dropped sharply amid security threats, raising fears of a prolonged supply crunch.
French President Emmanuel Macron condemned what he called a “reckless escalation”, warning that if energy production capacities were destroyed, “this war will have a much more lasting impact”.
The shock has forced countries that relied on Gulf energy to move quickly. Algeria, already a major supplier to Europe, is now pushing to increase exports both through pipelines and by sea.
'If the Strait of Hormuz were to remain closed, we would face a major crisis'
Rising exports
Algeria had already strengthened its position after the war in Ukraine began in 2022, when European countries cut back on Russian gas. Deliveries by pipeline to the European Union rose by 22 percent in January compared with the previous month, the Gas Exporting Countries Forum said in its February report.
Spain has been particularly reliant on Algerian gas, which accounted for more than 29 percent of its imports in the first two months of the year, data from grid operator Enagás show.
“We have talked about there being a greater volume. We spoke about the context of the gas market with the war in the Middle East,” Spanish Foreign Minister José Manuel Albares told reporters in Algiers on Thursday, after talks with Algeria's minister of hydrocarbons.
Spain and Algeria are considering raising deliveries by up to 10 percent, two sources familiar with the matter told Reuters.
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Demand from Europe
Italy is also seeking to expand supplies. “We have decided to reinforce our already very solid cooperation,” Prime Minister Giorgia Meloni said on Wednesday, also during a visit to Algiers.
“The relationship between our nations has never been so strong.”
Italy already gets around 30 percent of its gas from Algeria and is now looking to increase deliveries as supplies from Qatar are disrupted.
The shift reflects a broader scramble across Europe to secure stable energy sources as the conflict continues to affect production and transport routes in the Gulf.
Attacks have spread across the region. Drones have hit refineries in Saudi Arabia and Kuwait, while Iran has targeted infrastructure linked to the vast South Pars gas field, part of the world’s largest known gas reserve.
Kharg Island, the fragile oil lifeline behind Iran’s war economy
Supply limits
Despite rising demand, analysts say Algeria cannot fully replace lost Gulf supplies. Experts told the French news agency AFP that Algeria produces only about half as much liquefied natural gas as Qatar, and expanding production would take time.
The economic effect “will likely be felt for years”, said Theresa Fallon, director of the Centre for Russia Europe Asia Studies, a think tank in Brussels.
Analysts say attacks on energy production sites, rather than just transport routes and storage facilities, have raised concerns about the stability of global supply.
That means any increase in exports may ease pressure in the short term, but cannot fully offset the disruption caused by attacks on major energy hubs.
(with newswires)
