ALGIERS Dec 4 Algerian state energy group
Sonatrach said it did not plan to drop the proposed Galsi gas
pipeline to Italy, even though shareholders have delayed a final
decision on the project to next May.
Italian sources said on Nov. 30 that Algeria would pull out
of the pipeline project if Rome backs rivals South Stream and
the Trans Adriatic Pipeline (TAP).
"Sonatrach announces that the Galsi project is progressing
according to the schedule established by shareholders. They
still attach the same importance to the project," it said in a
statement on its website, dated Dec. 2.
"The Galsi General Assembly, held on Nov. 14 in Milan
(Italy), unanimously postponed the final investment decision to
May 30 for technical reasons," the statement added.
Besides Sonatrach, shareholders in the 8 billion cubic metre
pipeline include Italian companies Enel, Hera
, Snam and Edison.
Algeria currently provides Italy with around 35 percent of
its imported gas, most via an existing pipeline through Tunisia
and under the Mediterranean.
(Reporting By Hamid Ould Ahmed; editing by Jane Baird)