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| 12 September, 2018

Algeria plans new gas pipeline by 2020 -Sonatrach

The pipeline will have a capacity of up to 4.5 billion cubic metres (bcm) per year.

Image used for illustrative purpose. 
A worker is seen at the Zarzaitine gas field in In Amenas, 1,600 km (994 miles) southeast of Algiers January 22, 2013.

Image used for illustrative purpose. A worker is seen at the Zarzaitine gas field in In Amenas, 1,600 km (994 miles) southeast of Algiers January 22, 2013.

REUTERS/Louafi Larbi

ARICHA, Algeria- Algeria will invest $280 million to built a gas pipeline to boost output to Europe, a Sonatrach executive said on Wednesday.

The 197 km (122 mile) pipeline will connect to two others that link to Spain - the Pedro Duran Farell (GPDF) pipeline which runs via Morocco and the MEDGAZ pipeline which crosses the Mediterranean, Sonatrach Vice President Ahmed Mazighi told Reuters.

The pipeline will come online in 2020 and have a capacity of up to 4.5 billion cubic metres (bcm) per year.

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Algeria exported 55 bcm of gas in 2017.

It has renewed contracts with clients including Spain with 9 bcm per year for nine years and Turkey with 5.4 bcm per year for five years, officials have said. Negotiations are still ongoing with Italy.

Algeria also plans to sell gas via a new trading firm.

(Reporting by Lamine Chikhi; editing by Ulf Laessing and Jason Neely) ((Ulf.Laessing@thomsonreuters.com; Reuters Messaging: follow me on twitter @ulflaessing))