Medgaz Gas Pipeline

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Medgaz Gas Pipeline is an operating natural gas pipeline running from Algeria to Spain.

Location

The pipeline runs from Hassi R'Mel, Laghouat province, Algeria, onshore to Beni Saf, Aïn Témouchent province, and then under the Mediterranean Sea to Almería, Andalucía, Spain.

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Background

Medgaz runs a total of 757 km from Hassi R'Mel gas hub in Algeria to Almería, Spain. The pipeline runs 547 km as a 48-inch pipeline from Hassi R'Mel to Beni Saf, on the Algerian coast, and then 210 km as a 24-inch subsea pipeline across the Mediterranean to Almería. The project began in 2001; construction began in March 2008, and the pipeline was inaugurated in March 2011. The offshore portion was built by Italian firm Saipem. The total cost was more than €1 billion, i.e. more than $1.4 billion.[1][2]

After BP and Total S.A. withdrew from the project in 2006, the shareholders of Medgaz consortium included, Sonatrach (Algeria), CEPSA (Spain), Iberdrola (Spain), Endesa (Spain), and Gaz de France (France).[3] As of June 2020, after several buyouts, the pipeline was owned by Sonatrach (51%) and Naturgy (formerly Gas Natural Fenosa) (49%).[4] Naturgy financed its increased stake in the pipeline via a €260 million (US$285 million) loan from Santander, ING, Banca IMI and Natixis agreed in November 2019.[5]

Proposed Expansion

In November 2019, the Medgaz consortium awarded Arkad a $50 million contract to build an expansion of the compression station at Beni Saf. The expansion will allow the pipeline to expand from 8 bcm/year to 10.5 bcm/year. At the time it was scheduled to be completed in January 2021.[6][7]

Project Details

  • Operator: Sonatrach (51%) and Naturgy (49%)
  • Current capacity: 8 billion cubic meters per year
  • Length: 757 kilometers (547 km onshore and 210 km offshore)
  • Status: Operating
  • Start Date: 2011

Articles and resources

References

  1. Update on MEDGAZ offshore pipeline construction works, Steel Guru, 29 Dec. 2008.
  2. Spain now served via Almeria by Algerian gas, Ennahar Online, 1 Mar. 2011.
  3. Medgaz, Wikipedia, accessed February 2018
  4. Algeria's Sonatrach Becomes Majority Shareholder in Medgaz Pipeline, Pipeline & Gas Journal, 1 June 2020.
  5. Acquisition of 42% in Medgaz Pipeline (210KM), IJGlobal, accessed Aug. 5, 2020.
  6. Arkad-ABB wins $50 million order to expand compression station in Algeria, Arkad SpA press release, 12 Nov. 2019.
  7. Beni Saf Contract to Arkad-ABB, Breakbulk Events & Media, 15 Nov. 2019.

Related SourceWatch articles

External resources

External articles

Wikipedia also has an article on Medgaz (Medgaz. This article may use content from the Wikipedia article under the terms of the Creative Commons Attribution-ShareAlike 3.0 Unported License].