Pipedreams Become Reality

A series of major gas infrastructure deals is positioning Algeria at the heart of the EU's future energy policy, as worries over a dependency on Russian exports places the hydrocarbons-rich North African state in the driving seat to expand its own supply.

Algeria is already a significant supplier of natural gas to southern Europe, with two existing pipelines connecting the country with Spain and Italy. A second pipeline to Spain, the 200-km Medgaz pipeline, is expected to be operational by mid-2010, and will have an annual capacity of 8bn cu metres (bcm), while a second Italian pipeline, the Galsi pipeline, will also have a capacity of 8bcm and is due to begin construction next year.

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