Two people familiar with the discussions told Reuters the negotiations were nearing a preliminary agreement, which could be reached during Spanish Foreign Minister José Manuel Albares’ visit to Algiers this week.
Speaking after meeting Algerian President Abdelmadjid Tebboune and senior officials, Mr Albares confirmed discussions on higher volumes, pointing to ongoing volatility in global gas markets.
“We have talked about there being a greater volume (of gas). We spoke about the context of the gas market with the war in the Middle East,” he said.
The proposed increase would rely on spare capacity in the Medgaz pipeline, which directly links Algeria to Spain and can accommodate roughly 1 billion cubic metres (bcm) of additional gas annually.
The talks reflect a broader shift across Europe to deepen ties with Algeria, one of the continent’s key gas suppliers, as conflict-driven disruptions unsettle energy markets.
The Iran-linked tensions in the Middle East have added fresh uncertainty to supply routes, pushing buyers to seek more stable sources closer to home.
Algeria already plays a critical role in Spain’s energy mix. Data from Spain’s gas grid operator Enagás shows Algerian gas accounted for more than 29 per cent of Spain’s imports in the first two months of the year, making it one of Madrid’s top suppliers.
Commercial ties between the two countries remain strong. Spanish utility Naturgy holds long-term contracts with Algeria’s state energy firm Sonatrach for around 5 bcm of gas annually.
Sonatrach also owns a majority stake in the Medgaz pipeline and a minority share in Naturgy, underscoring the depth of the relationship.
Other European countries are also turning to Algeria. Italian Prime Minister Giorgia Meloni said during a visit to Algiers this week that Rome is seeking additional gas supplies, highlighting growing competition for North African energy.
For Algeria, the renewed demand presents an opportunity to strengthen its position as a strategic supplier to Europe.
For Spain and its neighbours, securing additional volumes could help cushion against further shocks in an already fragile global energy market.