UPDATE 1-Medgaz pipeline start-up delayed -project spokesman

Mon Nov 9, 2009 2:45pm GMT
 

* 8 bcm/yr pipeline to start operations about June 2010

* Commercial start-up originally planned for Q4 2009

* 90 percent of work on pipeline complete

(Adds members of Medgaz consortium, previous timetable

MADRID, Nov 9 (Reuters) - The commercial start up of the 8 billion cubic metre Medgaz pipeline to send gas from Algeria to Southern Spain has been set back to June 2010, a spokesman for the Medgaz consortium said on Monday.

The spokesman said that Medgaz Chairman Pedro Miro revealed on Saturday that tests on the pipeline would start in March and the pipeline will be fully operational around June.

Work on the undersea pipeline, which crosses the Mediterranmean Sea at a depth of more than 2,000 metres, is 90 percent complete, the spokesman cited Miro as saying.

Medgaz shareholder Cepsa (CEP.MC: Quote) said in June that the pipeline would come onstream commercially in early 2010, while another shareholder, Algeria's Sonatrach, said in May that the pipeline would begin operations in the fourth quarter of 2009.

Other members of the Medgaz consortium include Italian utility Enel's (ENEI.MI: Quote) Endesa (ELE.MC: Quote) unit, France's GDF Suez GAZ.PA and Spanish power group Iberdrola (IBE.MC: Quote). (Reporting by Robert Hetz; writing by Jonathan Gleave; editing by Karen Foster)

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