Algeria will invest 280 million USD to built a gas pipeline to boost its gas exports to Europe.

The 197 km pipeline will connect to two others that link to Spain - the Pedro Duran Farell (GPDF) pipeline which runs via Morocco and the MEDGAZ pipeline which crosses the Mediterranean, Sonatrach Vice President Ahmed Mazighi said earlier. He added that "one of our objectives is to continue to produce more gas and to transport more gas to Europe and in particular to Spain,"

The new pipeline will run from El-Aricha on the border between Algeria and Morocco to Beni-Saf, the starting point of the Medgaz pipeline, creating a new "loop" between the export lines. In order to be able to move gas in that direction, however, the capacity of Medgaz will also need to be expanded.

Sonatrach wants to be able to increase exports as it brings online a number of new major gas production projects in the coming years. The particular pipeline will come online in 2020 and have a capacity of up to 4.5 billion cubic metres (bcm) per year.

In 2017 Algeria exported 55 bcm of gas. It has renewed contracts with clients including Spain with 9 bcm per year for nine years and Turkey with 5.4 bcm per year for five years, officials have said. Negotiations are still ongoing with Italy. Algeria also plans to sell gas via a new trading firm.