Algeria Hints at Letting Go of Gas Pipeline Passing through Morocco

A gas pipeline in Algeria (File photo: Reuters)
A gas pipeline in Algeria (File photo: Reuters)
TT
20

Algeria Hints at Letting Go of Gas Pipeline Passing through Morocco

A gas pipeline in Algeria (File photo: Reuters)
A gas pipeline in Algeria (File photo: Reuters)

Algeria said Thursday that all the natural gas supplies in Spain are now provided through its gas pipeline connecting the two countries, bypassing Morocco, Algeria's official news agency APS reported.

The announcement, which comes two days after Algeria announced the severance of diplomatic relations with Morocco, suggests that Algiers will do without the Maghreb-Europe gas pipeline, which connects Europe via Morocco.

The Algerian Minister of Energy and Mines Mohamed Arkab made the announcement during a meeting with the Spanish ambassador.

Arkab affirmed: "Algeria's total commitment to cover all of Spain's natural gas supplies through the Medgaz," directly connecting the two countries, according to a ministry statement carried by APS.

Last week, before Algeria decided to "review" and then completely sever its relations with Morocco, Rabat said it was in favor of maintaining the Maghreb-Europe gas pipeline, the contract of which is due to expire in October 2021.

"Even in the event of non-renewal of this contract which ends next October, Algeria will be able to supply Spain, but also respond to any additional demand from the Spanish market without any problem," announced Sonatrach CEO last June.

APS also criticized Morocco's announcement of its willingness to extend the gas agreement between the two countries and said that Rabat reaps a "great benefit" from the passage of the gas pipeline to Europe.

Algiers announced on Tuesday that it was severing diplomatic relations with Rabat, citing "relentless hostile acts perpetrated by Morocco against Algeria."



UN's FAO: World Food Prices Dip in May

A woman sells dried foods at a street market in Hanoi, Vietnam, 06 June 2025. EPA/LUONG THAI LINH
A woman sells dried foods at a street market in Hanoi, Vietnam, 06 June 2025. EPA/LUONG THAI LINH
TT
20

UN's FAO: World Food Prices Dip in May

A woman sells dried foods at a street market in Hanoi, Vietnam, 06 June 2025. EPA/LUONG THAI LINH
A woman sells dried foods at a street market in Hanoi, Vietnam, 06 June 2025. EPA/LUONG THAI LINH

Global food commodity prices declined in May, driven by marked drops in cereal, sugar, and vegetable oil prices, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 127.7 points in May, reflecting a 0.8% decrease from the April figure.

The May reading was up 6% from a year earlier but over 20% below a March 2022 peak following Russia's full-scale invasion of Ukraine that started a devastating war between two of the world's leading grains producers.

The FAO cereal price index fell 1.8% month-on-month, led by a sharp drop in global maize prices. Strong harvests and ample supplies in Argentina and Brazil, along with expectations of a record crop in the United States, weighed on prices, Reuters reported.

Wheat prices edged lower due to improved crop conditions in the northern hemisphere.

By contrast, rice prices rose 1.4%, supported by firm demand for fragrant varieties and currency movements.

Vegetable oil prices declined 3.7% from April, with declines across all major oils. Palm oil prices fell due to seasonal output increases in Southeast Asia. Soy oil prices dropped on higher South American supplies and weak demand for biofuel.

Rapeseed oil eased on improved European Union supply prospects, while sunflower oil declined amid weak global demand.

The FAO sugar price index decreased by 2.6%, reflecting concerns over the global economic outlook, weaker demand from food and beverage industries, and expectations of a production recovery next season.

Meat prices rose 1.3% from April. Beef, pork and sheep meat prices increased, with beef reaching a record high. Poultry prices declined, pressured by surplus supplies in Brazil following import restrictions linked to a bird flu outbreak.

The FAO dairy price index rose 0.8%, supported by strong demand from Asia. Butter prices remained at historic highs, while cheese and whole milk powder prices also increased.

In a separate report, the FAO forecast record global cereal production of 2.911 billion metric tons in 2025, up from 2.848 billion in its previous estimate and 2.1% above 2024.

With production expected to surpass consumption, global cereal stocks are anticipated to grow by 1.0%, partially recovering from last year's contraction.