• Today, 5th March the Almerian mayor and the government's subdelegate opened the entry valve to Enagas
• On 1st March the gas pipeline started to be filled

Almería, 5th March 2011- Today, as a symbolic act within the testing phase, the Almeria mayor, Luis Rogelio Rodriguez-Comendador and the national government's subdelegate in Almeria, Andrés Heras, opened the Medgaz pipeline valve connecting it to the Spanish gas network. This is a major milestone for the company marking the beginning of the importation of Algerian gas to Spain via the Medgaz gas pipeline. This new step took place in the reception terminal situated in the "Playa de Perdigal" on the Almeria coast, in the presence of the Almerian Subdelegation Director of the Department of Industry and Energy, Luis Díaz de Quijano and the Managing Director of MEDGAZ, Juan Antonio Vera.

The company, comprising the shareholders Sonatrach, Cepsa, Iberdrola, Endesa and Gaz de France Suez, is in the final stage of the testing programme with gas. On 1st March, after the verification of all units in the Compression Terminal in Benisaf, the Algerian "offshore" valve was opened in order to to start filling the marine pipeline and commence with gas at the Reception Terminal in Almeria. The act on 1st March, was assisted by the Sonatrach Chief Executive Noureddine Cherouati and the MEDGAZ President Pedro Miró as well as the Algerian authorities and directors of the partner companies.

The test sequence of the MEDGAZ pipeline consists of commissioning and start up phases. During the commissioning phase all systems were verified, whereas for the start up phase the gas is being progressively introduced.

Natural gas is currently flowing through the gas pipeline and today it has been connected to the Spanish gas network via the Enagas pipeline in order to continue increasing volumes to reach full system capacity in a stable and reliable way. MEDGAZ foresees that the pipeline will be technically prepared for operation within a few weeks.

MEDGAZ is the company responsible for the construction and operation of the deep water gas pipeline from Algeria to Europe via Spain which supplies natural gas directly from Benisaf on the Algerian coast to Almeria at an initial capacity of 8 bcm per year. Its operation offers improvements by ensuring the gas supply and providing a more direct and cost-effective route to southern Europe thereby positively contributing to the targets set in the Kyoto Protocol by providing a clean-burning fuel 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