Algeria-Italy Galsi gas pipeline delayed to 2014

CAGLIARI, Italy (Reuters) - The start-up of the Galsi pipeline to bring Algerian gas to Italy will be delayed to 2014 due to a changed route, its consortium chairman Roberto Poti said on Monday.

Italy, heavily dependent on gas imports, originally expected the 8 billion cubic metres pipeline via the island of Sardinia to come on stream in 2012, but that had slipped to 2013.

"There have been delays in the authorisation process which started in July 2008 and is not yet completed, but we hope (to complete it) by the year end," Poti told a conference on the pipeline held in Sardinia.

The consortium expected to obtain the right to inject gas in the national network for a 3 billion euro pipeline next year and start work in 2011, he said.

"There will be three years of intense and difficult work and the start-up of the pipeline is expected in 2014," Poti said.

"The total spending budget, including international and national networks, is about 3 billion euros," he said.

When completed, the pipeline will run 840 km along the Mediterranean seabed from eastern Algeria, via Sardinia, to the Italian mainland.

Poti said the underwater parts of its route had to be changed to ensure seismic stability of the pipeline.

Algerian state energy firm Sonatrach has a 41.6 percent stake in the consortium and Italian utility Edison has a 20.8 percent share. Other partners are Italian utilities Enel with 15.6 percent and Hera with 10.4 percent and the Sardinia region with 11.6 percent.