“Due to Morocco’s hostile acts towards Algeria undermining national, unity the president has ordered the oil company Sonatrach to cut off trade relations with the Moroccan electricity company ONEE,” a statement from the presidency said.
The Maghreb-Europe pipeline carries Algerian natural gas to Spain through Morocco, with Rabat being paid a royalty for passage.
Morocco also uses some of the gas to produce about 10% of its electricity.
The Algerian authorities decided not to renew the gas contract, which ended on Sunday.
Sonatrach had announced it would keep supplying Spain with natural gas through the Medgaz pipeline only.
However the undersea facility has a smaller capacity and Algeria has suggested that it be upgraded or gas be shipped to Spain instead to cater for the shortfall.
Algeria and Morocco have fallen out over a number of issues, with Algeria recently cutting off diplomatic relations and banning Moroccan flights from its airspace.
Algeria accuses Rabat of supporting Algerian separatists and using Israeli technology to spy on its officials.
Asaase Radio 99.5 – tune in or log on to broadcasts online
99.5 in Accra, 90.7 in Ho, 98.5 in Kumasi, 99.7 in Tamale, 89.5 in Tarkwa and 106.9 in Walewale
Follow us on Twitter: @asaaseradio995