GAZ de France (GdF) has announced plans to invest $1.8bn in two gas pipeline projects linking Europe to Algeria by 2007, and to Iran by 2015. The French gas company will finance 12% Medgaz, linking Spain and Algeria from 2007, with the intention of making Algeria “its second supplier, equal with Russia” by 2010.
"We have obtained the agreement from Algerian authorities and we'll sign the contract in coming days," Jean-Francois Cirelli, head of GdF, said.
Mr Cirelli also said that GdF would invest in the Nabucco project, bringing gas from Caspian Sea deposits and Iranian reserves to Austria, in a "more-ambitious" project to finance 30% of the 3,300-km pipeline. "We are candidates (for the project) and are ready to put money into it," he said. The Nabucco gas pipeline will deliver up to 30bn cum/yr of gas to Europe.
Work on the 747-km long Medgaz Mediterranean pipeline, with a capacity to transport 8-10bn cum/yr of gas, is due to start in July and finish in 2007, at which time it will start supplying Spain with 4bn cum/yr.