Benefit Description
- The Galsi project will improve security of supply in Italy and Europe, providing for a new and more efficient route for Algerian gas to reach the centre of
Italian gas consumption (located in northern Italy) and further on the northern European markets. In the longer term, with the development of new
projects interconnecting different gas sources in Africa (e.g. new Algerian shale gas or TSGP project for Nigerian gas), the Galsi pipeline could provide a
highly strategic diversification of gas supply routes to European markets and their supply flexibility. - The Galsi project will contribute to the creation of an
Italian gas hub for gas supply to Europe which, through the increase of gas liquidity, will enable the export of major gas volumes from Italy to other
European markets through the development of reverse flow capacities. - Reduction of GHG emissions; the Galsi project complies with sustainable
development guidelines, i.e. the promotion of the substitution of high pollutant fo
Barriers
Barrier Type
Description
Regulatory
The Italian Section of the project will be ruled under the Italian regulatory framework. The International Section (from Algeria to Italian territorial waters in
Sardinia) will be build and operated by Galsi as an independent operator with a tariff agreed between the Company and shippers.
Permit Granting
Permitting process (involved inter alia 2 regions, 9 provinces and 40 townships) substantially completed: environmental permi
Market
The persistent uncertainties in the market scenarios make more complex the finalisation by the Shareholders of the commercial framework of the project,
i.e. the definition of suitable terms and conditions for the gas supply and gas transportation agreements, which represents an essential piece for the final
investment decision.
Financing
EEPR funds for 120 millions euros were granted by the European Commission with decision on 13th August 2010. This grant was then cancelled with
decision on 26th September 2014. Future availability of new European Commission funds would be a key issue for the success of the project.
Intergovernmental Agreements
Agreement
Agreement Description
Is Signed Agreement Signature Date
Italy – Algeria Inter-Governmental
Agreement for Galsi project
Agreement between Italy and Algeria to promote and support the permitting, the construction
and the commissioning of the Galsi Pipeline Project.
Yes
14/11/2007
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