Today’s news that Spanish energy champion Gas Natural has signed an LNG deal with Gazprom for the Shtokman Field comes at a crucial time for the energy security of the country vis-a-vis Russia. The agreement, which will allow for faster, easier spot market transactions of LNG from Gazprom (as well as possible future pipeline deals), was signed within the context of Moscow’s rapidly advancing energy strategy to encircle the EU, staple down control of supply of natural gas from North Africa (where Spain gets 1/3 of their supply from) as well as push for a bigger future role in the LNG trade, everywhere from the Barents Sea to Bolivia. According to Zoe Grainge of Global Insight, this deal might be an “in” to the Iberian market, which could springboard to a raft of future deals. An analyst from Dresdner Kleinwort quoted in the same article argues that “the beauty of this deal is that it is giving Gas Natural access to a significantly higher portfolio of natural gas. From Gazprom’s point of view, it is getting access to the tankers of Gas Natural.” Up until quite recently, Spain was relatively isolated from Gazprom’s occasional political bullying, mostly thanks to its advanced LNG market (one of the largest in Europe). However, the Spaniards do receive close to 1/3 of their natural gas supply via two pipelines – one which brings Norwegian gas from France, and the other being the critically important Maghreb-Europe Gas Pipeline from Algeria via Morocco. According to a 2007 survey by the EIA, Spain represents one of the fastest growing natural gas markets in Europe, with consumption tripling between 1994 and 2004 related to the rise of numerous combine cycle electricity generation plants.