ALGERIA - The PDF Line & Iberian Markets.

The 1,430-km Maghreb-Europe PDF gasline, on stream since Nov.1996, runs from Hassi R'Mel through Morocco, across the Srait of Gibraltar to Cordoba in Spain. There it ties into the Spanish transmission network. One section to Portugal came on stream in early March 1997. The system links up with France. Extensions from France to Germany and other European markets have been proposed. The pipeline's capacity will reach 12.85 BCM/y by Sept 2004 to take gas from In Salah. Gas Natural (GN), the main gas utility in Spain, owns 72.36% of PDF's non-Algerian segment, with the rest held by Transgas of Portugal.

Under a contract to 2021 signed in June 1992 and extended by one year in 2001, GN's division Enagas is committed to buy 6 BCM/y and may take more occasionally. In 2002 it took more than 6.5 BCM, up from 5.5 BCM in 2001 and 6.3 BCM in 2000. Under a contract to 2020 signed in April 1994, Transgas is committed to buy 2.5 BCM/y, the volume it took in 2002 (from 2.3 BCM in 2001 and 2 BCM in 2000).

The Spanish market for gas continues to expand rapidly thanks to PDF. GN has extended its pipeline system for Algerian supplies in southern Spain, where it has two big gas-fired power plants which started up in 2001, and across the western provinces which will also take gas from LNG. Spain now is the second biggest gas market for Algeria.