TTPC expansion set to start on 1st May, after delay
Algeria is due to send delayed gas deliveries into Italy through the TTPC pipeline on 1st May, said Mohamed Meziane, c.e.o. of Algerian gas incumbent Sonatrach, at the sidelines of the 11th International Energy Forum, this month.
In an exclusive interview with Heren Energy in Rome, Meziane said gas deliveries through the expanded TTPC, which were due to start on 1st April, would now begin on 1st May. He said the delay was due to a lack of demand from Italian shippers. Traders active on the Italian PSV hub have repeatedly informed Heren Energy that the additional gas was not arriving, but neither Eni nor Sonatrach has previously confirmed the delay, or offered any reason. Given the current length in Italy and the market’s resilience to price hikes reported in the north-western European markets, dealers had previously speculated that at least some of the four companies with the extra 3.2 billion cubic metres (Gm3) of capacity had delayed delivery due to market fundamentals. Meziane said the second expansion phase of the TTPC – slated for October this year – was on schedule.
Regarding the Skikda LNG project, Meziane said construction plans were on schedule, and production should begin by the end of 2011. In addition, Sonatrach expects to award contracts for Gassi Touil by September or October 2008, if not beforehand, Meziane told Heren Energy. As to how much gas from both terminals would be set aside for the spot market would depend on the market, said Meziane, but he estimated the volume to be around 25-30% of total production.
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