Spanish gas demand has recovered in recent years, following a challenging and prolonged period after the economic crisis. In the medium term, competitiveness and flexibility of gas generation makes it an attractive fuel, particularly to cover hydro shortfalls. Longer term, policy decisions – on the phasing-out of coal and nuclear and the penetration of renewables – will be the most important drivers of gas demand. Piped gas has quickly gained market share from LNG in recent years, rising from 25% in 2010 to 65% in 2018 – with Algerian flows hitting a record at 16.6 bcm in 2018. However, this trend started to reverse at the end of 2018. Since October 2018, utilisation of Spanish LNG import terminals has picked up as an influx of LNG comes to Europe to balance the global market. We expect pipeline flows from Algeria to fall during the next few years to accommodate additional LNG volumes bought by Spanish companies building up their LNG portfolios.