Algeria to extend gas line to Italy in 2008

The Algerian government Sonatrak company for energy and a group of partners on Monday agreed to proceed forward in erecting a second line for gas linking Algeria to Italy. The project is expected to be operational by the beginning of 2008.

The Algerian minister of energy Shakib Khalil told journalists in Milano, Italy, that the European market will witness an explosion in demand and this requires supplies not only from Algeria but from other sources.

Khalil added that the project will require investments ranging between $ 2 to 3 billion, but no agreement is made on financing. Sonatrak and the Italian gas Addison and Eanle Power are part owners.

The capacity of the line will be 10 billion cubic meters at least. It will also include electric cables to permit electricity import and export.

Algeria exports 95% of its gas production to Europe and aims at increasing exports to 85 billion cubic meters by the fall of 2010.