Algeria’s Gas Supply to Spain Temporarily Suspended

 Part of the Medgaz underwater natural gas pipeline between Algeria and Spain. (Reuters)
Part of the Medgaz underwater natural gas pipeline between Algeria and Spain. (Reuters)
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Algeria’s Gas Supply to Spain Temporarily Suspended

 Part of the Medgaz underwater natural gas pipeline between Algeria and Spain. (Reuters)
Part of the Medgaz underwater natural gas pipeline between Algeria and Spain. (Reuters)

A malfunction in the Medgaz underwater natural gas pipeline between Algeria and Spain has caused a temporary suspension of gas supplies to Spain on Sunday, Algerian state media said, citing a statement from state oil and gas producer Sonatrach.

The malfunction occurred on the Spanish side, and Spain is working on fixing it to ensure the resumption of supplies as soon as possible, Sonatrach added, according to state media.

Sonatrach is a key gas supplier to Spain and France.

However, tensions are simmering between Algiers and Madrid over recent Spanish comments on Western Sahara as Spain has shifted closer to Morocco’s position on the conflict there.

In March, Algeria recalled its ambassador from Madrid in protest at Spain’s decision.

The global gas market has been witnessing rapid changes after the West imposed sanctions on Russia in response to Moscow's invasion of Ukraine, a gas transit route to Europe as well as a major wheat exporter.

As a result, European countries began searching for alternaticve gas suppliers, and resorted to the Middle East countries.

Algeria warned in April that it would terminate gas supplies to Spain if Madrid sold any Algerian gas to other countries, citing what it said was a Spanish decision to supply gas to Morocco via a pipeline.

Algeria has previously said it will stick to its contract with Spain despite withdrawing its ambassador.

Algeria decided last year not to extend a deal to export gas through a pipeline running through Morocco to Spain that made up nearly all Morocco's gas supply. It is supplying Spain through a direct subsea pipeline and by vessel.

Morocco now wants to import liquefied natural gas (LNG) from Spain by reversing the flow of the pipeline while it moves to develop its own longer-term LNG import terminals.

Algerian television, reporting the warning, said that Energy Minister Mohamed Arkab had received an email from his Spanish counterpart notifying him of Spain's decision to allow a reverse flow of the pipeline.

However, Spain's energy ministry said that in no case would gas acquired by Morocco come from Algeria and that it had discussed the plan with Algiers in recent months.



China Eyes Electric Vehicle Manufacturing Opportunities in Saudi Arabia

Chinese ambassador to Saudi Arabia (Asharq Al-Awsat)
Chinese ambassador to Saudi Arabia (Asharq Al-Awsat)
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China Eyes Electric Vehicle Manufacturing Opportunities in Saudi Arabia

Chinese ambassador to Saudi Arabia (Asharq Al-Awsat)
Chinese ambassador to Saudi Arabia (Asharq Al-Awsat)

China’s ambassador to Saudi Arabia, Chang Hua, expressed Beijing’s hopes to strengthen its partnership with the kingdom, especially in electric vehicle production and other industries.
Speaking to Asharq Al-Awsat, Hua condemned violations of Lebanon’s sovereignty and the targeting of civilians.
He called for immediate action to reduce tensions and prevent further escalation in the region.
“China is deeply shocked by the high civilian casualties from the conflict between Israel and Lebanon,” Hua said, urging the international community to work on calming the situation.
He emphasized that, no matter how things unfold, “China will always stand for justice and remain committed to peace and stability in the Middle East. We are ready to work with all parties to promote peace in the region.”
China’s Economic Growth
Hua highlighted China’s rise from a $30 billion economy to a $17.8 trillion one, making it the world’s second-largest economy and a leader in trade and industry.
He reiterated China’s goal to maintain high-level openness, push for high-quality economic development, and promote a multipolar world with fair global governance and inclusive economic globalization.
Saudi-China Relations
Hua described the partnership between Saudi Arabia and China as entering a new phase of deep development, congratulating Saudi Arabia on its 94th National Day.
He noted that Chinese Premier Li Qiang’s recent visit to Saudi Arabia has boosted bilateral relations and strengthened the comprehensive strategic partnership, driving it towards a more stable and prosperous future.
The ambassador stressed the need to expand trade and investment between the two countries and highlighted the upcoming “Saudi-Chinese Cultural Year 2025” as a key event.
Hua also pointed out that Saudi Crown Prince Mohammed bin Salman values the strong and historic relationship between the two nations.
The Crown Prince looks forward to further aligning Saudi Vision 2030 with China’s Belt and Road Initiative, expanding cooperation in energy, investment, and culture.
Hua noted that China is Saudi Arabia’s largest trading partner, with bilateral trade exceeding $100 billion in the past two years. He also mentioned the recent currency swap agreement between the two countries, which has helped boost trade and investment.
New Developments in Saudi-China Relations
According to Hua, the cooperation between the two nations has grown significantly, particularly in the automotive, renewable energy, and tourism sectors.
In 2023, Saudi imports of Chinese cars reached $4.12 billion, driven by companies like Changan, Geely, MG, Chery, Great Wall, Hongqi, GAC, and BYD, which have opened branches in the kingdom.
Discussions are ongoing about building local manufacturing plants. China exported 4.91 million vehicles in 2023, making it the largest car exporter globally for the first time, including 1.203 million electric vehicles, a 77.6% increase from the previous year.
Hua noted that Saudi Vision 2030 aims for electric vehicles to account for at least 30% of all cars in Riyadh by 2030, and he expressed optimism about enhancing collaboration in automotive manufacturing.
Chinese companies are also increasingly involved in Saudi Arabia’s renewable energy sector. They are working on multiple solar projects, including the Al Shuaibah photovoltaic plant, the largest of its kind in the world, with a capacity of 2.6 gigawatts.
In July 2023, the Renewable Energy Localization Company (RELC), backed by the Saudi Public Investment Fund, signed agreements with three Chinese firms—Envision Technology Group, Jinko Solar, and TCL Zhonghuan—to establish joint ventures for high-efficiency solar cell production in Saudi Arabia.
These projects will focus on producing solar components, helping Saudi Arabia achieve its goal of sourcing 75% of renewable energy project components locally by 2030.
Hua also highlighted the increasing exchange of visits between citizens of both countries. In September 2023, China and Saudi Arabia signed a memorandum of understanding to facilitate group tourism, making the kingdom an official destination for Chinese tour groups.
Several Chinese travel agencies have begun offering packages to Saudi Arabia, and direct flights between the two countries are increasing. Saudi Airlines has expanded its routes, operating numerous weekly flights between Beijing, Shanghai, Shenzhen, Riyadh, and Jeddah.