Brussels, 24/11/2010 (agence EUROPE) - On Tuesday 23 November, the European investment bank (EIB) announced a €500 million loan to Medgaz, for the construction of a gas pipeline between Algeria and Spain, which will bypass Morocco.
Medgaz is a consortium of five international companies active in the energy sector: Sonatrach from Algeria (36% of the capital), the Spanish companies CEPSA (20%), Iberdrola (20%), Endesa (12%) and GDF Suez, from France (12%). The construction of this pipeline began in 2002 and was structurally completed in December 2008. Its trial period will start at the beginning of 2011.
The agreement for the long-term loan was signed on Monday 22 November in Madrid. It is expected to cover the costs already incurred by the consortium. Overall investment will be around €1 billion.
The gas pipeline will transport an annual capacity of 8 billion cubic meters over a 210 km distance under the sea, at a depth of 2,160 m, between Beni Saf in Algeria, where a gas compressor has been installed and Almeria, Spain, where the gas-receiving terminal will be set up.
According to developers backing Medgaz, this is a strategic project for Algeria and Spain, as well as for the rest of Europe. It will help to improve security of supply, given that it will directly link the European market to a significant supply of Algerian gas. (F.B./transl.fl)