Piped exports of Algeria-to-Spain gas were the lowest in a decade at 5.2bcm in the first nine months of 2020 due to Covid-19’s demand-destroying effects and the availability of cheaper LNG (see chart).
Algeria could be in for a near-term boost however, as its oil-linked gas supply contracts (which typically include a six-month delay) start to reflect the rock-bottom crude prices seen earlier in the year (MEES, 24 April). And if the recent rise in spot LNG prices (from as low as $1.2/mn BTU in May to about $4.5/mn BTU today) to Europe lasts, this too will help. (CONTINUED - 368 WORDS)
