Galsi, Snam Rete sign agreement for Algeria to Italy pipeline

Galsi and Snam Rete Gas today signed an agreement that confirms the mutual commitment to, and sets out the conditions for, the construction of the Italian section of the new pipeline importing gas from Algeria to Italy, via Sardinia.

Offshore staff

MILAN, Italy -- Galsi and Snam Rete Gas today signed an agreement that confirms the mutual commitment to, and sets out the conditions for, the construction of the Italian section of the new pipeline importing gas from Algeria to Italy, via Sardinia.

The Galsi project includes the international undersea section, from the Algerian coast to the south of Sardinia near Cagliari, and the Italian section comprising the overland section crossing Sardinia (to the Olbia area) and a new undersea section to Tuscany (near Piombino), where the pipeline will be connected to the Italian national transport network.

The pipeline will be approximately 900 km (559 mi) in length overall, of which 600 km (373 mi) will be offshore and at a maximum depth of around 2,800 m (9,186 ft) between Algeria and Sardinia. The initial transport capacity will be 8 bcm/y.

According to the agreement, Galsi will develop the engineering and obtain the main permits and authorizations required, and Snam Rete Gas will build the pipeline and subsequently manage the gas transport activities.

The agreement reached confirms the commitment of Galsi (41.6% Sonatrach, 20.8% Edison, 15.6% Enel, 10.4% Hera Trading, 11.6% Sardinia Region) and Snam Rete Gas to invest extensive resources in the construction of one of the biggest natural gas procurement projects in Italy's history.

10/07/2008

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