Uchenna Izundu
International Editor
LONDON, Nov. 9 -- Galsi SPA and Snam Rete Gas SPA signed a memorandum of understanding in Rome Nov. 7 to construct the Italian section of the planned 8 billion cu m/year Galsi natural gas pipeline, which will deliver Algerian gas to Italy via Sardinia (OGJ Online, Oct. 18, 2007).
The Galsi pipeline will be 900 km long, with 600 km of it offshore in water as deep as 2,850 m between Algeria and Sardinia.
In a first step towards establishing the Africa-Europe gas transportation network, Sardinia is set to receive gas supplies starting in 2012 from the new line, but it remains unclear how much gas it will receive.
"The project involves an international offshore section of the pipeline, which will run from the Algerian coast to Southern Sardinia (near Cagliari) where it will link up with the Italian section," the companies said in a joint statement. "This will include an inland section across Sardinia to Olbia and another offshore section to Tuscany (near Piombino) where the new pipeline will interconnect with [Italy's] national transportation network."
Galsi SPA will carry out the engineering work and will obtain the relevant permits and main authorizations, while Snam Rete Gas will assume construction and transport management responsibilities. The partners said Galsi would open up Italian and European gas markets, as it will allow the import and sale of gas along a new pipeline and enable new operators to enter the Italian market.
Galsi shareholders are Algerian state-owned Sonatrach; Italian companies Edison SPA, Enel SPA, and Hera Trading; Sardinia's Regione Sardegna; and Wintershall AG of Germany.
Sontrach will deliver 3 billion cu m/year to the pipeline, Enel will supply 2 billion cu m/year of gas, and Hera Trading ,1 billion cu m/year.
Contact Uchenna Izundu at [email protected].
