CROSS-BORDER GAS-LINE PROJECTS FACE DAUNTING CHALLENGES

Pricing, costs, financing, and politics are chief among the issues that can impede construction of major, cross-border gas-pipeline projects trying to connect plentiful reserves with unsatisfied market demand. Additionally, strained relationships among parties involved in both supply and delivery can further slow or even halt progress on a project. In the cases of the Transmed (Algeria across Tunisia to Italy) and the Maghreb-Europe (Algeria across Morocco to Spain), the close working relationships of all parties involved helped resolve many issues and were key in the projects` eventual completion. Here is an update on these two important pipelines in addition to a synthesis of Sonatrach`s views on some of the major issues raised by the development of cross-border gas-transmission projects.