The President of the Government, Pedro Sánchez, embarks this Monday on an official visit to Algeria with the aim of definitively leaving behind the diplomatic disagreement regarding Western Sahara. The trip prioritizes increasing the supply of Algerian gas to Spain and opening new avenues for business and investment for Spanish companies, taking advantage of the new phase that has opened in the bilateral relationship.
In Moncloa, they admit that this second visit of Sánchez to the Maghreb country, after the one made in October 2020, symbolizes the closure of the crisis generated by Spain's support for the Moroccan autonomy plan for the Sahara and marks the start of a new phase. They insist that the Executive has not changed its position at any time, although it has worked to reduce tensions, and emphasize that it has been Algeria that has been taking gradual steps towards thawing.
The letter sent by Sánchez to King Mohamed VI in March 2022, in which he supported the Moroccan autonomy plan for the former Spanish colony as "the most solid, credible, and realistic basis" for resolving the conflict, fell like a cold shower in Algeria, the main ally of the Polisario Front, as it represented a shift from Spain's traditional stance.
The Algerian president, Abdelmayid Tebune, who will receive Sánchez with all honors this Monday, reacted by immediately recalling his ambassador in Madrid and, in June 2022, suspending the Treaty of Friendship, in addition to freezing trade by blocking banking transactions. Over time, and partly after seeing Spain's position regarding the Gaza war, Tebune decided in December 2023 to return the ambassador and in November 2024 the trade restrictions were lifted.
Finally, last March, the Algerian leader informed the Minister of Foreign Affairs, José Manuel Albares, during his stay in Algiers, that the Treaty of Friendship was reactivated and, as a gesture that the clash with Spain was overcome, the country was invited as the guest of honor at the International Fair of Algiers in June. "The choice of Spain as the guest of honor is a choice of both reason and heart," Tebune proclaimed then.
LOOKING TO THE FUTURE
Having overcome the diplomatic dispute, both governments want to focus on the future and, in particular, on relaunching economic cooperation, according to government sources. Although it is not ruled out that the Sahara may appear in the conversations, they emphasize that the shared interest now lies in the economic field.
In this framework, the Spanish Executive has set a dual purpose: to increase the flows of Algerian gas that arrive in the country and to strengthen trade and investment ties beyond the energy sector, with an eye on projects and sectors that Algeria aspires to develop in the coming years.
Algeria continues to be Spain's main gas supplier, a fact that the Government has emphasized throughout this period, during which, despite the political distance, the gas contracts between companies have been fulfilled in detail. "Algeria is a reliable supplier," members of the Executive have reiterated whenever they have had the opportunity.
INCREASE IN GAS SUPPLY
In the current energy context, marked by the war in Ukraine, the break of European countries with Russia as a gas supplier, and the uncertainty generated by a possible closure of the Strait of Hormuz, which has driven up oil and gas prices by concentrating a significant part of the world's crude and Liquefied Natural Gas (LNG) traffic, the Government wants to increase the volume of gas coming from Algeria.
The main goal is to reduce the weight of LNG, which today accounts for between 65% and 70% of imports, and to increase the gas that arrives via pipeline. To achieve this, they seek to raise shipments through Medgaz, a cheaper option and less exposed to market turbulence. According to the same sources, there is a willingness on both sides to increase the flow of gas through this infrastructure.
They detail that the pipeline still has room to transport more volume to Spain and that both governments are now analyzing under what conditions this could be done, waiting for the companies to finalize the contracts. The Executive wants to avoid Algeria sending more gas than the Spanish system is capable of absorbing.
At the same time, the possibility of also increasing LNG deliveries is being studied with the Algerian authorities, to which they have shown openness. From Moncloa, they specify that the option of importing up to 10% more gas by pipeline and doubling the amount of Algerian gas currently arriving by sea is being considered.
REDUCE THE TRADE DEFICIT
Another of Moncloa's objectives is to help reduce the trade deficit with Algeria resulting from gas purchases, boosting Spanish exports and investment and taking advantage of some of the tenders that the country is preparing, especially in infrastructure, energy, and water, areas in which Spain has leading companies.
The trade exchange with Algeria collapsed after the restrictive measures adopted by Algiers, with Spanish exports falling from 2.906 billion euros in 2019 to just 332 million in 2023, although activity began to recover at the beginning of 2024.
This fiscal year closed, according to official data, with sales to Algeria of 794.5 million euros, compared to purchases of 6.122.8 million, leaving a deficit of 5.328.3 million. In 2025, Spanish exports to the Maghreb country rebounded to 2.133.4 million, while imports rose to 6.296.1 million, which represented a reduction of the deficit by 22%, down to 4.162.7 million.
In the first four months of 2026, the same dynamic is maintained, with exports of 803.6 million and imports of 4.240.1 million, although it is still to be seen whether pre-crisis and pre-pandemic levels will be reached.
The Government also wants to take advantage of the president's trip, who, in addition to meeting with Tebune, will hold a meeting with Prime Minister Sifi Ghrieb to try to unlock several disputes affecting Spanish companies in the country as much as possible. It believes that resolving them would increase confidence and encourage new investments, something that would also benefit Algeria.
Sánchez will travel accompanied by the third vice president and minister for Ecological Transition, Sara Aagesen, and by the Minister of Foreign Affairs, who will hold bilateral meetings with their Algerian counterparts. The delegation also includes representatives from companies with a presence in Algeria, including energy companies Repsol, Naturgy, Moeve, and Enagás, as well as others interested in establishing themselves in the future, with whom the president plans to hold a meeting.