Algeria Improves Pipeline Export Capacity To Spain

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Algeria Improves Pipeline Export Capacity To Spain

Thu, 07/15/2021 - 14:23
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Algeria national flag on gear behind a gas rig (copyright by Shutterstock/GrAl)
Algeria national flag on gear behind a gas rig (copyright by Shutterstock/GrAl)

It has been agreed that the export pipeline capacity of the subsea Medgaz natural gas pipeline that links Algeria with Spain will be expanded. It will involve the installation of a fourth turbo compressor able to increase gas exports by capacity by two bcm/year, representing an increase of 25%, reaching ten bcm/year from the fourth quarter onwards. The cost of this new investment will be some $90 million (€73 million). Already, some billion dollars has been made in this pipeline over the decade. Once the expansion is operating, 25% of Spanish natural gas consumption will pass through Medgaz.

The partners involved in this project upgrade include the Algerian state-owned energy monopoly Sonatrach and Spanish multinational natural gas and electrical energy utilities company, Naturgy. At present, Sonatrach is one of the leading gas providers to Spain and is the fourth largest shareholder in Naturgy with a share of 4%.

Francisco Reynés stated that this infrastructure “strengthens the security of the natural gas supply to Spain and is key to providing guarantees and stability to the ecological transition and decarbonisation process. After a decade of continuous operations, Medgaz is a success in terms of operations and our collaboration with a strategic partner like Sonatrach.”

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