Italy has agreed to continue with the ALSI gas pipeline project which will cost US$2.5 billion G in order to allow Algeria to supply gas to northern Italy and Europe through a pipeline connection. The new partnership was agreed by the Algerian Minister of Foreign affairs Ramatane Lamamra and Italy’s Paolo Gentiloni during a working visit to Algeria.
GALSI will transmit 8 billion cubic metres per year and Algeria owns 41.6% of the project.
Established in 2003, GALSI is a gas pipeline project owned by Sonatrach, Edison, Enel and Hera group and will stretch of 837 KM. Approximately 565KM of the gas pipeline will be offshore across the Mediterranean sea and 272km onshore. The pipeline connects to Italy through Sardinia and was expected to come online from last year.
The construction project will enable Italy to sustain its energy requirements by getting natural gas supplies from Algeria.
Once GALSI gas pipeline project is rolled out, it will help create more employment opportunities and increase investment opportunities in the two countries.
The construction project is a move by the two countries to create favourable economic cooperation between them and promote interest in Italian firms to participate in housing and seaport projects in Algeria.