• Project attains 97% overall progress
• Offshore pipeline already completed (100%)
• Onshore installations at over 90% progress

Almería, 9^th December 2009- MEDGAZ attained in November 2009 a 97% overall project progress. Having achieved the completion of the offshore pipeline in March 2009 and 90% of the onshore works, MEDGAZ has started the testing sequence.

The testing sequence is comprised of a commissioning phase and a start-up phase. During the commissioning phase, which has already been initiated at Beni Saf Compressor Station once the hydro-tests of the most relevant systems have been successfully completed, all the systems that have achieved mechanical completion are verified. At the start-up phase, the gas volumes will progressively increase to attain the overall system capacity in a stable and reliable mode. The start-up phase is scheduled in the early months of 2010.

MEDGAZ is the company in charge of building and operating the Algeria- Europe Pipeline, via Spain. With an initial capacity of 8 BCM/year, MEDGAZ will transport the natural gas from Beni Saf in the Algerian coast up to landfall in Almería. Its transportation capacity will improve security of supply, provide a more direct and therefore cost-effective way of delivering gas to southern Europe and make a positive contribution towards the targets set out in the Kyoto Protocol through the use of cleaner energies such as natural gas.

• Capacity: 8 bcm/year
• Length: 210 Km (between Beni Saf and Almería).
• Diameter: 24 inches (610 mm).
• Maximum water depth: 2,160 m.
• Land based facilities: Compressor Station (Algeria) and Receiving Terminal (Almería).
• Investment: 900 million euros.
• Shareholders: SONATRACH (36%), CEPSA (20%), IBERDROLA (20%), ENDESA (12%) and GAZ DE FRANCE SUEZ (12%).

MEDGAZ SA
External Relations
Tlf. +34 950 24 23 47
www.medgaz.com