Medgaz Gas Pipeline

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Medgaz Gas Pipeline , انبوب ميدغاز, 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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Project Details

  • Operator: Sonatrach (51%) and Naturgy (49%)
  • Owner: Sonatrach
  • Capacity: 8 billion cubic meters per year[1]
  • Length: 757 kilometers (547 km onshore and 210 km offshore)
  • Status: Operating
  • Start Date: 2011
  • Diameter: 24-inch
  • Cost: 900 Million Euro
  • Financing:
  • Associated infrastructure:

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.[2][3]

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).[4] As of June 2020, after several buyouts, the pipeline was owned by Sonatrach (51%) and Naturgy (formerly Gas Natural Fenosa) (49%).[5] 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.[6]

Capacity 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. The expansion completed in February 2022[7].[8][9]

The expansion project was estimated to cost €67 million (US$73.91 million).[10]

According to a June 2021 article, "the capacity of Medgaz was expanded to 10.5 Bcm/year and could be expanded further to 16 Bcm/year."[1]

Articles and resources

References

  1. 1.0 1.1 "Algeria has taken 'necessary measures' to offset non-renewal of Morocco gas deal". Retrieved 2021-09-03.
  2. Update on MEDGAZ offshore pipeline construction works, Steel Guru, 29 Dec. 2008.
  3. Spain now served via Almeria by Algerian gas, Ennahar Online, 1 Mar. 2011.
  4. Medgaz, Wikipedia, accessed February 2018
  5. Algeria's Sonatrach Becomes Majority Shareholder in Medgaz Pipeline, Pipeline & Gas Journal, 1 June 2020.
  6. Acquisition of 42% in Medgaz Pipeline (210KM), IJGlobal, accessed Aug. 5, 2020.
  7. "توسعة أنبوب "ميدغاز" دخلت مرحلة التجريب".
  8. Arkad-ABB wins $50 million order to expand compression station in Algeria, Arkad SpA press release, 12 Nov. 2019.
  9. Beni Saf Contract to Arkad-ABB, Breakbulk Events & Media, 15 Nov. 2019.
  10. Naturgy and Sonatrach to buy out Mubadala’s stake in Medgaz gas pipeline, NS Energy, Oct. 16, 2019.

Related GEM.wiki 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].