TRANSMED PIPELINE EXPANSION

The Project will involve the expansion of the trans-Tunisian section of the Transmed Pipeline System linking Hassi R'Mel in Algeria to the Italian gas grid at Mazara del Vallo in Sicily through the expansion of existing compressor stations and the addition of two new compressor stations. The project will increase the capacity of the pipeline system from 26.5 Gm3/year up to 33 Gm3/year.

The Project will contribute to meeting Italy's growing demand and reinforcing the security of EU energy supply. It will also have a significant impact on more competition and liberalisation of the internal market by making all the additional import capacity available to competitors of the main market player (ENI). The project has been identified as a priority Energy-TEN of Common Interest.

If located in the EU the Project would be classified under Annex II of the Environmental Impact Assessment directive (85/337/EEC as amended by 97/11/EC).
Under the Tunisian legislation (decret 91-363 largely inspired from the EU directive) environmental impact studies shall be carried for all high-pressure gas transportation facilities (including compressor stations) and shall be submitted to the ANPE (Agence Nationale pour l'Environnement) as part of project's approval process. The environmental impact studies will be reviewed in detail during appraisal.

Procurement for the project was carried out through direct negotiations. The promoter justifies this fast track approach on the grounds of timing constraints (accelerated project timing imposed by the Italian anti-trust authority), the operational gains expected from using a single manufacturer for all turbo-compressors (including those already in operation) and the fact that one of their subsidiaries is competent to carry out the construction works.

Oil & Gas.