By Hamid Ould Ahmed
ALGIERS, May 31 (Reuters) - Algeria will increase the capacity of its main gas export pipeline to Italy by 7 billion cubic metres (bcm) a year and try to speed up work on a new route, Algeria's energy minister said on Sunday.
European Union states are hoping to increase gas supplies from Algeria to reduce their reliance on Russia, especially after Moscow's standoff with Ukraine earlier this year disrupted supplies across Europe.
Algeria is the EU's third biggest foreign gas supplier. The Transmed pipeline, which runs from Algeria via Tunisia to the Italian island of Sicily, has a capacity at the moment of 27 bcm/yr.
'We talked about the expansion of the Transmed pipeline. Its capacity will increase by 7 billion cubic metres by the end of this year,' Khelil said after talks with Italian Economic Development Minister Claudio Scajola.
Efforts will also be undertaken to speed up completion of the Galsi pipeline, Khelil told a news conference.
The Galsi project is expected to supply Italy with 8 bcm/yr. It was originally due to start operations by 2012 but officials have previously said this will be pushed back, citing technical difficulties.
'We will try to accelerate things,' on the Galsi project, Khelil said.
The project's partners include Algerian energy firm Sonatrach, Italian gas network Snam Rete Gas as well as Italian utilities Edison, Enel, and Hera .
Snam is controlled by Italy's biggest oil and gas group Eni .
'We will start works soon,' Scajola, speaking through an interpreter at the same news conference, said about the Galsi pipeline project.
Asked about EU attempts to diversify its gas supplies after the Russia-Ukraine row, he said: 'Galsi has become a strategic project for Europe. It's among European priorities.'
Another new pipeline project, the Medgaz link to Spain, will deliver 8 bcm/yr to Europe. First deliveries are expected to flow through that pipeline at the end of this year.
Some industry experts say that despite the plans to increase pipeline capacity, there are questions about whether Algeria can increase output to meet European expectations.
They point to modest new gas finds and Algeria's mixed results in the past few months at attracting foreign energy majors to invest in developing Algerian fields.
Algerian officials have blamed the global economic slowdown for dampening foreign interest in its energy sector.
(Writing by Christian Lowe; Editing by Michael Roddy) Keywords: ENERGY ALGERIA/ITALY (maghreb.newsroom@thomsonreuters.com; tel: +212 5 3772 6518; fax: +212 5 3772 2499) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
ALGIERS, May 31 (Reuters) - Algeria will increase the capacity of its main gas export pipeline to Italy by 7 billion cubic metres (bcm) a year and try to speed up work on a new route, Algeria's energy minister said on Sunday.
European Union states are hoping to increase gas supplies from Algeria to reduce their reliance on Russia, especially after Moscow's standoff with Ukraine earlier this year disrupted supplies across Europe.
Algeria is the EU's third biggest foreign gas supplier. The Transmed pipeline, which runs from Algeria via Tunisia to the Italian island of Sicily, has a capacity at the moment of 27 bcm/yr.
'We talked about the expansion of the Transmed pipeline. Its capacity will increase by 7 billion cubic metres by the end of this year,' Khelil said after talks with Italian Economic Development Minister Claudio Scajola.
Efforts will also be undertaken to speed up completion of the Galsi pipeline, Khelil told a news conference.
The Galsi project is expected to supply Italy with 8 bcm/yr. It was originally due to start operations by 2012 but officials have previously said this will be pushed back, citing technical difficulties.
'We will try to accelerate things,' on the Galsi project, Khelil said.
The project's partners include Algerian energy firm Sonatrach, Italian gas network Snam Rete Gas as well as Italian utilities Edison, Enel, and Hera .
Snam is controlled by Italy's biggest oil and gas group Eni .
'We will start works soon,' Scajola, speaking through an interpreter at the same news conference, said about the Galsi pipeline project.
Asked about EU attempts to diversify its gas supplies after the Russia-Ukraine row, he said: 'Galsi has become a strategic project for Europe. It's among European priorities.'
Another new pipeline project, the Medgaz link to Spain, will deliver 8 bcm/yr to Europe. First deliveries are expected to flow through that pipeline at the end of this year.
Some industry experts say that despite the plans to increase pipeline capacity, there are questions about whether Algeria can increase output to meet European expectations.
They point to modest new gas finds and Algeria's mixed results in the past few months at attracting foreign energy majors to invest in developing Algerian fields.
Algerian officials have blamed the global economic slowdown for dampening foreign interest in its energy sector.
(Writing by Christian Lowe; Editing by Michael Roddy) Keywords: ENERGY ALGERIA/ITALY (maghreb.newsroom@thomsonreuters.com; tel: +212 5 3772 6518; fax: +212 5 3772 2499) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.