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Thursday, November 25, 2010

EIB lends 500 mln euros to Algeria-Spain gas pipeline

Tue Nov 23, 2010

BRUSSELS (Reuters) - The European Investment Bank (EIB) will provide a 500 million euro loan for the Medgaz gas pipeline between Algeria and Spain, the bank said on Tuesday.

The loan -- the EIB's biggest for a Mediterranean energy project -- amounts to roughly half the total cost of Medgaz, which will pump about 8 billion cubic meters (283 billion cu ft) of gas from Algeria under the Mediterranean to Spain each year.

Medgaz is scheduled to come on stream in early 2011, having been delayed several times.

The EIB said in a statement the project would help meet growing gas demand in Spain and increase the diversity of natural gas supplies to the European Union.

The project will allow Spain to substitute pipeline gas for some of its substantial liquefied natural gas imports.

The Medgaz consortium comprises Algeria's state oil and gas firm Sonatrach, Spanish utility Iberdrola and oil firm Cepsa, as well as Italian utility Enel's Spanish unit Endesa and France's GDF Suez.

Source: Reuters.
Link: http://af.reuters.com/article/topNews/idAFJOE6AM0U820101123.

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