GALSI Pipeline

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GALSI Pipeline, also known as the Gasdotto Algeria–Sardegna Italia (GALSI) Gas Pipeline, was a proposed pipeline which would link gas from Algeria to Italy.[1] There have been no developments on the project since 2012. It is presumed cancelled. Sections of the pipeline have also been called the Cagliari-Olbia Pipeline and the Olbia-Pescaia Gas Pipeline.[2]

Location

The pipeline would begin at Koudiet Draouche near the Annaba Gulf in Algeria and connect to the Algeria-Sardinia undersea section. In Sardinia, the pipeline would reach Porto Botte, from where it then stretches south to north to reach Olbia. At Olbia, the pipeline would connect with the Sardinia-Tuscany undersea section. The pipeline would terminate at Piombino in Italy, where the gas would be delivered to the national gas distribution network.

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Project Details

  • Operator: Sonatrach (41.6%), Edison (20.8%), Enel (15.6%), Hera Group (10.4%), Region of Sardinia (10.4%)[1]
  • Current capacity:
  • Proposed capacity: 8 bcm per year / 16,000 Gwh/day[2]
  • Diameter: 26, 48 inches[3]
  • Length: 837 km / 520 miles
  • Cost: US$ 3 billion[4]
  • Status: Cancelled
  • Proposed Start Year: 2022[3]

Ownership

A consortium of energy and gas companies established a new company called GALSI in 2003 to develop the pipeline. Sonatrach owns the largest share of 41.6% interest in GALSI, while Edison has 20.8% interest, Enel has 15.6% interest and Hera has 10.4%. The region of Sardinia owns the remaining 10.4% stake.[1]

Background

In 2003, A consortium of Sonatrach, Edison, Enel and Hera Group launched a joint-venture to develop the GALSI (Gasdotto Algeria–Sardegna Italia) pipeline which would further link Algeria's gas production to Italian markets. As Algeria already supplies Italy with 35% of its gas needs with the Transmed pipeline, the Galsi project would further Italy's dependence upon Algeria's gas production.[1]

The pipeline would measure approximately 837km - 565km of which would be offshore across the Mediterranean Sea, while 272km would be onshore. The pipeline would have a capacity of 8 billion cubic meters per year and would cost around $2.5 billion to implement the project.[1]

In 2005, a feasibility study was conducted while the project was geared to be completed by 2012. However, delays have prevented any construction of the pipeline as the project continues to be in limbo.[5][1]

Delays and Possible Cancellation

While construction was originally planned to begin in 2012, the project has been continuously delayed due to a number of technical and economic challenges.[1] The delays have been caused by both sides. First, various concerns of Italian officials delayed the project shortly after feasibility studies, which were subsequently followed by concerns from Algerian state-backed company, Sonatrach. Some of the concerns rested upon pricing, instability of European gas markets, and alternative pipeline projects which may make the GALSI pipeline nonviable.[6]

In 2014, Enel CEO Francesco Starace stated that progress on the GALSI pipeline's construction did "not looking encouraging."[7]

In 2015, a new partnership was agreed by the Algerian Minister of Foreign affairs Ramatane Lamamra and Italy’s Paolo Gentiloni to continue with the development of the GALSI pipeline.[8]

As of 2018, Edison SPA reported that the GALSI pipeline was expected to go on stream in 2018 even though there has not been any reported construction or further development on the pipeline project.[9][10]

Because there's been no construction or other developments, the pipeline is presumed cancelled.

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Algeria Sardinia Italy Gas Pipeline (Galsi), Hydrocarbons Technology, accessed April 2018
  2. 2.0 2.1 Italy, Switzerland and Austria Pipelines map, accessed Jan 30, 2020 Cite error: Invalid <ref> tag; name "theo" defined multiple times with different content
  3. 3.0 3.1 European Network of Transmission System Operators for Gas (2020). "TYNDP - Annex A - Projects Tables RPJ007_NS_2020 - entsog". ENTSOG. Retrieved September 16, 2020.
  4. Asset Data, IJGlobal, accessed Aug. 27, 2020
  5. Christopher E. Smith, Subsea pipeline projects advance in 2018, Oil & Gas Journal, April 02, 2018
  6. Christopher Coats, Euro-Bound Algerian Gas Pipeline Faces Unsure Future, Forbes, December 26, 2012
  7. Enel CEO says Galsi gas pipeline situation "not encouraging", Reuters, October 30, 2014
  8. Italy and Algeria to partner in a GALSI gas pipeline project, Construction Review Online, accessed June 11, 2015
  9. Subsea pipeline projects advance in 2018, Oil & Gas Journal, 04/02/2018
  10. Galsi Pipeline, Edison, accessed April, 2018

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