Sonatrach Becomes Spain’s Leading Gas Supplier by 2026
Algeria, via its national energy company Sonatrach, is consolidating its role as a leading energy provider in the Mediterranean region. By 2026, the country is positioned to become Spain's primary natural gas supplier. This development follows official figures from Enagás, the Spanish gas network operator, which reported Sonatrach delivered 10,707 GWh in July 2026, accounting for 41.7% of Spain's total gas imports that month. Over a year-long period from August 2025 to July 2026, Algerian gas imports reached approximately 131,662 GWh, meeting nearly 35% of Spain's national requirements.
This strengthened energy partnership is underpinned by the strategic Medgaz pipeline, which transported over 115,000 GWh in the past year, complemented by Liquefied Natural Gas (LNG) supplies. The renewed focus on collaboration was highlighted by the visit of Spanish government president Pedro Sánchez to Algeria on July 20, 2026. This visit, involving key energy sector figures, resulted in a major political agreement to enhance supplies, including plans to utilize the remaining 10% transport capacity of Medgaz and increase LNG purchases without modifying existing infrastructure.
Algeria's expanding influence extends beyond Spain, with Italy also being a significant part of its European energy strategy. According to the Gas Exporting Countries Forum (GECF), Sonatrach's pipeline exports to Spain increased by 13% and to Italy by 5% during the first seven months of 2026 compared to the previous year. This growth occurs amidst Europe's phased withdrawal from Russian gas imports, with a ban on Russian LNG by January 1, 2027, and pipeline flows by the end of 2027. Concurrently, regional competitors, such as Libya, have seen their gas flows to Italy significantly decrease.
To sustain its position as a major exporter and meet increasing domestic demand—as gas generates 99% of the country's electricity—Sonatrach has launched a substantial investment plan for 2026-2030, with 75% of funds allocated to exploration and production. Furthermore, Algeria is advancing the Trans-Saharan Gas Pipeline (TSGP) project, with the Algerian section's work launched in Aoulef on June 4, 2026. This project aims to transport up to 30 billion cubic meters of Nigerian gas to Europe via Niger and the Algerian network, reinforcing Algeria's long-term role as a key gas hub in the Mediterranean.
