Algerian hydrocarbons company Sonatrach announced Wednesday it had signed a deal with Spanish oil group Cepsa to set up a company to study the feasibility of a gas pipeline project linking the two countries.
The new company will have 500,000 dollars (563,000 euros) of capital equally divided between the two partners, said the Sonatrach.
The project catered to the promising development perspectives of the demand for natural gas in Europe, particularly in Spain, in the electricity generation sector, the company said.
The Maghreb Europe gasline already links Spain and Algeria, leaving from the Hassi R'Mel field in the Sahara and crossing Morocco. A second gasline, the Transmed, links Algeria to Italy via Tunisia. – (AFP)
© Agence France Presse 2000
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