Algeria’s Sonatrach and Italy’s Eni have signed an agreement to increase the capacity of the Tunisian section of the Transmed gas pipeline, Sonatrach’s industry publication Market News reported in its April edition. The pipeline carries Algerian gas through Tunisia to Sicily through an underwater pipeline across the Mediterranean. The Tunisia section is operated by the Trans Tunisian Pipeline Company (TTPC). Pipeline capacity (27bcm/year) will be increased by 3.2bcm in 2008 and again by 3.3bcm in 2012. Eni will finance the €330mn expansion and Sonatrach will reciprocate with investments in the Algerian section of the pipeline. This is the fourth expansion of the Transmed pipeline, taking its capacity to 33.5bcm/y and further strengthening Sonatrach’s position in the Italian gas market. Previous expansions were undertaken in 1990, 1996 and 2003 (MEES, 23 June 2003). Italy consumed 80bcm of natural gas during 2004 and Algeria was its largest individual supplier, providing 31% of total consumption and 37% of imports for the year. The agreement also includes restructuring the Transmediterranean Pipeline Company (TMPC), a 50:50 joint-venture between Sonatrach and Eni, which owns the underwater section of the pipeline.
Sonatrach And NNPC Sign Trans-Saharan Gas Pipeline Feasibility Study
Meanwhile, Sonatrach and the Nigerian National Petroleum Company (NNPC) on 7 May signed an agreement with UK-based PENSPEN/IPA Energy Consulting for a feasibility study to determine the optimal course of the proposed Trans-Saharan Gas Pipeline (TSGP) project. The TSGP would have a capacity of 18-25bcm/year and run from Nigerian gasfields to Europe via Niger and Algeria.
