Sharjah 24 – Reuters: Algeria, which has cut off diplomatic ties with Morocco, will stop supplying natural gas to the country through the Maghreb-Europe pipeline from Nov. 1, three sources with direct knowledge of the matter told Reuters.

The 13.5 billion cubic-meter (bcm) Maghreb-Europe pipeline links Algeria to Spain. Algeria will keep supplying Spain using the Medgaz undersea pipeline with an annual capacity of 8 bcm, which does not go through Morocco, the sources said.

Analysts say technical issues relating to Algeria's plans to expand the capacity of the Medgaz pipeline could escalate the energy crisis in Spain at a time of soaring gas bills across Europe.

Algeria in August hinted at the possibility of ending natural gas exports in October to Morocco of 1 billion cubic meters (bcm), used to produce around 10% of the kingdom's electricity.

One source at state-owned state oil and gas firm Sonatrach and two Algerian government sources said the supply agreement with Morocco would not be renewed.

Algerian and Moroccan energy ministries did not immediately respond to requests for comment from Reuters.