Algerian Pipeline to Europe Plan In Doubt

The prospect of natural gas from Algeria being piped via Sardinia to Northern Italy and onward to Europe is still uncertain as the date for making a decision regarding its viability has been delayed once again.

The pipeline, known as Galsi, would provide an 800km, 8 billion cubic metre, link between Algeria and Europe. Algeria could increase production and start fracking for shale gas. However a series of delays have haunted the progress of the project since its conception ten years ago.

First Italian officials deferred making a decision, and now Algeria’s partner in the deal, Sonatrach, announced it would not give final approval in November 2012 as anticipated, but will wait until May 2013. The delay has given rise to fears that the project will never come to fruition.

Reuters has reported that Sonatrach is wary due to Italy’s potential involvement in other giant natural gas pipeline projects, and wants to see what happens with the Trans-Adriatic and South Stream pipeline projects. Officials in Rome recently said that they will not make any decisions on the other pipelines until September 2013.

In 2011 a spokesperson for Galsi said the first supplies of gas were unlikely to be delivered before 2015.