Spain Turning to U.S. for Gas

Spanish natural gas intake in May rose 12% y-o-y to 36.7 TWh supported by firm LNG imports from the US, Nigeria and Russia according to data published this week by gas grid operator Enagas.

• Volumes received from the US in May reached 13.1 TWh, making it Spain’s main supplier, with 35% of all volume supplied to the country in the year to date, or 67.5 TWh.
• Volumes from Nigeria more than doubled year on year to 4.9 TWh, while Russian volumes rose 52% to 3.3 TWh. The two countries have supplied 15% and 7%, respectively, of Spain's gas volume in the year to date.
• Increased LNG flows continued to displace Algerian piped gas from Spain's supply matrix, with volumes through the 11 Bcm/year Medgaz pipeline seen at around two thirds of capacity in May, according to Enagas data.
• There are concerns that Algeria may cut gas pipeline supplies to Spain after tensions rose over a disagreement over the Western Sahara this week. Algeria ended it’s 20-year treaty of friendship with Spain. So far gas imports have not been impacted though new contracts are being negotiated.