Spain, Algeria, and Morocco have agreed to the first phase of a $1.5 billion pipeline to transport Algerian gas to Spain.
The three nations' energy ministers formally agreed to the proposal at a meeting in Madrid last month. The project is scheduled to start up in 1995.
The three ministers will meet in Algiers June 7 to negotiate delivery volumes during 1995-2002. As much as 350 bcf/year of Algerian gas could be involved.
Construction will take place in two stages, a 504 km line Sonatrach will lay in Algeria and a 600 km line Spanish and Moroccan companies will lay in Morocco and across the Strait of Gibraltar. A Spanish group will finance the second phase and a Moroccan-Spanish combine will handle construction.
Spain's Enagas will lay the section from Gibraltar to Seville.
There had been concerns that political instability in Algeria might threaten the project. However, Spanish Industry Minister Claudio Aranzadi dismissed those concerns, saying the pipeline was crucial to the Maghreb region's economic survival. And Algerian Energy Minister Nordine Ait-Laossine said his government could guarantee construction and maintenance of the pipeline.
Spain's National Energy Plan estimates gas will account for 12% of the nation's total energy mix by 2000. The Industry Ministry plans to spend 540 billion pesetas ($5.25 billion) on Spain's gas infrastructure, with 100 billion pesetas ($972 million) earmarked for the Maghreb-Spain line.
Tentative plans call for later extending the Maghreb-Spain system to Portugal, France, and Germany (OGJ, Aug. 26, 1991, Newsletter).
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