17-07-09 Operation of the Medgaz pipeline transferring Algerian natural gas through a gas pipeline to Spain and Europe will start before the end of this year, an Algerian official source revealed.
Algerian Energy and Mining Minister Chakib Khelil said, "Work on the pipeline is ongoing, and it is expected to be completed by the end of November, which means the pipeline will become operational before the end of 2009."

Khelil said that the pipeline has a length of 200 km extending under the sea, the connecting west of the Algerian capital region with that of Almeria, south-east of Spain, adding that it would allow the transfer of an estimated 8 bn cm of gas to expand to 16 bn cm per year. Algeria expects profits of EUR 5 bn a year thanks to private investments in the project, he added.
The minister pointed out that the Algerian oil company Sonatrach has 36 % of the shares of the pipeline, followed by two Spanish oil companies at a rate of 20 % each.

Sonatrach has already announced in June that five multinational companies have been commissioned to complete the project of Medgaz gas pipeline, Japanese companies Mitsui, Sumitomo, British company Rolls Royce, Italian company Saipem and Spanish-French company Tecnicas consortium Riendas Lamek. Mitsui and Sumitomo will provide 226 km of carbon steel pipes while Rolls-Royce will provide three engines for the pumping station, which will increase the gas pressure from the Algerian coast to Spain across the Mediterranean.
Saipem will also complete the sea section, while Tecnicas is assigned the completion of the pumping station, as well as the gas reception station in Spain.