The Algerian company Sonatrach said that “the accident affected the Medgas gas pipeline, which supplies gas to Spain.”

Reuters previously reported that Algerian state-owned energy company Sonatrach is exploring new options for raising gas prices for buyers in Europe to take advantage of a significant increase in global gas prices. In this regard, two people familiar with the agency indicated that “Sonatrach is exploring several options, including partial linking to gas prices in spot transactions in contracts that have historically been linked to the price of Brent crude oil.”

The Algerian company is also trying to renegotiate prices with companies that receive gas from the Medgaz offshore gas pipeline, including Naturgi, Cheps and Endes in Spain, Enge in France and Galp in Portugal. And one of the sources explained: “Sonatrach has very strong negotiating skills, because she has gas, and she understands that Europe needs it.” “Buyers now understand that they are caught between a rock and a hard place,” he added.