Spain Increases Gas Purchases From Russia (+3.2%) While Purchases Of Algerian Gas Fall (+41%)

The security of the UK’s LNG supply is precarious

Imports of gas from Algeria fell by 41.11% in the first half of 2022 compared to the same period the previous year. Meanwhile, purchases of this raw material from Russia increased by 3.2% year-on-year in the first six months of the year, according to the latest data from Enagás’ Boletín Estadístico, corresponding to June.

Specifically, in the first half of the year Spain bought 55,962 gigawatt hours (GWh) of gas from Algeria, of which 51,484 GWh (92%) arrived by pipeline (Medgaz) and the rest in methane tankers in the form of liquefied natural gas (LNG). These figures represent a 40% drop in Algerian gas arriving in Spain by pipeline compared to the first half of 2021.

The loss of weight of purchases from the African country is also noticeable in the accumulated data, given that in the first half of 2021 they accounted for 47.7% of total imports of this fuel, while in the first six months of 2022 they fell to 24.7%.

In the case of Russia, despite the geopolitical situation arising from the invasion of Ukraine, Spain bought a record 8,752 GWh of gas from this country in June, compared with 6,587 GWh in the same month of 2021 (+32.9%) and around 3,000 GWh per month so far in 2022.

Thus, 24.4% of the 35,890 GWh of gas imported by Spain in the sixth month of the year came from Russia, making it the second largest national supplier of this raw material after the United States.

In the cumulative first half of 2022, Russian gas imports amounted to 22,948 GWh, i.e. 3.2% more than the 22,236 GWh in the first half of 2021. In the first six months of 2022, purchases from Russia accounted for 10.1% of the total, while in the same period of 2021 they accounted for 11.2%.

On the other hand, the US has consolidated its position as Spain’s main gas supplier, given that 29.6% of imports in June, with 10,618 GWh, and 34.4% of purchases in the first half of the year (78,078 GWh) came from the North American country. The cumulative figures for the first half of the year indicate that US gas imports have multiplied by 4.3, rising from 18,184 GWh in the first half of 2021 to 78,078 GWh between January and June 2022.

Likewise, the 10,618 GWh of gas imported from the US in June 2022 represents an increase of 764.65% compared to the 1,228 GWh purchased in the same month last year, i.e. a more than eight-fold increase. In addition to the USA, Algeria and Russia, Nigeria also stands out as one of Spain’s main gas suppliers, given that in the first half of the year, 14% of imports of this raw material came from this country.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.