The EU will provide €2mn to finance technical and optimization studies for the Medgaz pipeline, the consortium that will build, own and operate the pipeline, Medgaz SA, reported on 7 April. The financial aid was granted within the framework of Trans-European Networks for Energy (TEN-E), after the project was considered one of the most important ones for the security and diversification of European energy supplies, Medgaz said.
The Medgaz project involves the construction of a 200km deepwater pipeline running across the Mediterranean Sea between Beni Saf in Algeriaand Almeria in Spain at depths of 2,160ms. The 28in pipeline will have a capacity to carry 8bcm/year. Estimated cost of the project is put at €630mn. It is due to begin mid-2005 and finish in 2007 (MEES, 17 January). Shareholders in the company include Sonatrach and Cepsa, each with 20%, and BP, Endesa, Gaz de France, Iberdrola and Total, each with 12%. Sales and purchase agreements have been signed with the following companies: Gas Natural (3bcm/y), Cespa (1bcm/y), Total (1bcm/y), Iberdrola (1bcm/y), and Tractebel subsidiary Distrigas (1bcm/y).
