Brussels, 13/07/2012 (Agence Europe) - The “Galsi” gas pipeline connecting Algeria to Italy (Sardinia) has been put on the back burner, according to the Algerian press. The national energy company of Algeria, Sonatrach, holds 41.6% of its capital. Sonatrach CEO Abdelhamid Zerguine, the Algerian press reports, has for the first time revealed the fact that the decision to begin developing the transcontinental gas pipeline, which is to carry 8 billion cubic metres, has been delayed due to price formulae that associates wish to impose on the group.
Sonatrach and its associates in the project implemented over the past seven years are reported not to have concluded talks on provision agreements, which would give rise to closed contracts. The announcement was made on Wednesday by the Sonatrach director who said the decision to invest in the project had been postponed until November. He added that they can only take commitments if they have firm contracts, that the quantities of gas are there but that the current pressure on long prices must stop. (FB/transl.jl)