European Commission has approved a plan to build a 440 million ($660 million) gas pipeline from the U.K. to Belgium.
It is intended to lead to the first exports of British gas to continental Europe.
Next stage in approval of the project will be a pipeline treaty between the British and Belgian governments.
Philip Nolan, managing director of Interconnector (U.K.) Ltd., the company created by partners to manage the project, said he hopes a treaty will be signed soon.
Construction of the Interconnector is to begin in winter 1996. The 240 km, 40 in. line is to run from Bacton, U.K., to Zeebrugge, Belgium. First gas throughput is due in October 1998.
Nolan said Interconnector has identified sites for terminals in both countries. He hopes planning applications to local authorities will be well under way by year end.
The Interconnector is unusual for Europe's gas industry because companies had to commit to the project before sales contracts were fixed, Nolan said.
Nine companies booked a total 20 billion co m/year of gas throughput in Interconnector, with British Gas plc having the largest share at 40% (OGJ, Dec. 19, 1994, p. 26).
Wood Mackenzie Consultants Ltd. raised doubts about the viability of the project this year. The analyst said high U.K. gas prices and lack of third party access by British gas firms to continental pipelines would curb potential exports of U.K. gas (OGJ, Apr. 3, Newsletter).
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