A senior Moroccan official said on Monday that Morocco is discussing with Spain the potential of reversing the flow of a gas pipeline if Algeria does not renew a supply arrangement that expires on October 31.

Reuters quoted the official, who asked not to be named, confirming local media reports, saying, “For Morocco, the pipeline is more of a tool for regional cooperation…we will not let it rust,”

He added that Morocco is in talks with Spain to use its LNG terminals to pass gas to Morocco using the same pipeline.

He continued: “This LNG will not compete with Spanish gas supplies. It will be an additional purchase ordered by Morocco which will pay the cost of the transit through Spanish terminals and the pipeline,”

He noted that Morocco also gave permits to gas importers in anticipation of Algeria not renewing the pipeline deal.

Algeria had earlier stated that it would not renew the deal to export gas through the 13.5 bcm pipeline that crosses Morocco, but would instead expand the Mediterranean Medgaz pipeline, which does not cross its neighbor, to a capacity of 10 bcm by December.

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