Amid surging consumption and a preference for cleaner-burning natural gas, European demand for gas imports is expected to increase sharply in the years ahead. Algeria is seen as well placed to meet that demand because of its proximity - and European governments' desire to reduce the region's dependence on Russia.
Sonatrach is a major supplier to southern Europe, with pipeline links to Spain and Italy, but the company has been looking for ways to move into the large central European network that supplies energy-hungry Germany.
Russia and Algeria account for the bulk of European gas imports at present, accounting for about 25% and 10%, respectively.
other by BP PLC (BP), Royal Dutch Shell PLC (RDSA) or StatoilHydro ASA (STO), Compania Espanola de Petroleo SA (CEP.MC), or Cepsa.
Algeria and Italy are working on a plan to build another pipeline that would bring gas to Sardinia, called the Galsi project.
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