The overthrow of Gadafi in Libya hurt petroleum firms, which have yet to recover fully from tensions in Africa. However, it looks like the most recent conflict in Algeria will not hit the natural gas market in Spain.
Spain has one month of natural gas reserves thanks to demanding national regulations that mandate diversified fuel sourcing for times of crisis.
Further, the Spanish natural gas network has a third of all the natural gas refineries in Europe. This network gives us some leeway if the conflict in Africa continues. If it becomes necessary to consume our own natural gas, we could default on futures of gas sales with eleven gas ships. In this case, a well-designed policy is acting as a safeguard against crisis.
