Algerian state-owned Sonatrach will invest $280 million to build a gas pipeline that will link to two existing pipelines between Spain and North Africa, Sonatrach Vice President Ahmed Mazighi told Reuters.

The 197 km pipeline will connect to the Pedro Duran Farell (GPDF) pipeline which enters Spain via Morocco, and the Mediterranean MEDGAZ pipeline which runs between Beni Saf and the Spanish port city Almeria.

The pipeline is expected to be operational by 2020 and have a capacity of up to 4.5 billion cubic meters (bcm) per year.

Algeria recently renewed contracts with Spain and Turkey for 9 bcm per year and 5.4 bcm per year respectively, while negotiations with Italy are still ongoing.