Snam Rete Gas SpA said it is ready to start construction work on the GALSI gas pipeline once the final investment decision has been taken by shareholders and when all the permits are secured.

"It is the GALSI shareholders who need to take the final investment decision and secure all the permits necessary since the project is theirs," a Snam spokesperson said.

In an interview Thursday, with Il Sole 24 Ore, Sontatrach CEO and chairman Mohamed Meziane said a decision to reroute the pipeline, which will transport Algerian gas through Sardinia to Italy, could delay the whole project.

Meziane said Snam has changed the original pipeline route between Sardinia and the Italian mainland for seismic considerations in the area.

The pipeline, which will have a capacity of 8 billion cubic metres of gas a year, is due to pump first gas toward the end of 2012.


Copyright 2008 AFX News Limited. All Rights Reserved.