About Project.
The Galsi project was promoted by Sonatrach, the national Algerian oil & gas development company. Sonatrach, employing some 120 thousand workers, is a major exporter of natural gas, LNG and LPG.
Sonatrach owns and operates som 15,000 km of pipelines, including two transcontinental gasducts (Pedro Duran Farel gasduct towards Spain through Morocco and Enrico Mattei gasduct towards Italy).
The Galsi project envisages the construction and operation of a new 900 km gasduct from Algeria to Italy, through Sardinia, with a capacity of some 9 billion cu.m per year, in association with a few major Italian partners.
Scope.
Our customer, a major trader of natural gas, has been invited by Sonatrach to submit a proposal for the acquisition of a stake of the project company and for the rights to purchase a portion of the natural gas transported by the pipeline.
Our Approach and outcome.
We have analyzed the project and made a fair estimate of the required capital investment for the design and construction works (some 1.2 US$bn).
We have also analyzed the subsequent cost of transport (OpEx + depreciation) and made an assessment of a fair value of the natural gas to be imported.
The Outcome
Our proposal was submitted to the Developer, in view of further developments of the project.