Five companies selected for Algeria-Spain pipeline project
Algeria’s Sonatrach and the Spanish oil group CEPSA have selected as BP-Amoco of the United Kingdom, Endesa of Spain, ENI of Italy, and GDF and TotalFina-ELF to participate in the construction of a second gas pipeline that would link Algeria to Europe via Spain.
In order to be selected, the companies already had to be developing a strategy in the Spanish energy sector or in Algeria’s upstream oil and gas industries.
The joint venture for the second pipeline was created in August by Sonatrach and CEPSA with an equal share capital of $500,000.
Sonatrach said that other companies, which had expressed interest in the project but ultimately were not selected, will be invited to demonstrate their interest once again for upcoming phases of the project.
Algeria's first undersea gas pipeline, the Transmed line, runs through Sicily to mainland Italy. More than 25 percent of the 1 trillion cubic meters of gas produced to date from Hassi R'Mel, the source of the natural gas in Algeria, has gone to the Italian market.
Algeria has Africa’s largest natural gas reserves, with an estimated 131 trillion cubic feet. – (Albawaba-MEBG)
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