TransMed Gas Pipeline Sees Increased Importance
The TransMed gas pipeline, which connects Algeria to Italy through Tunisia, has seen its importance grow in recent years. In the first eleven months of the year, 196.3 million Tunisian dinars (MTND) were collected, compared to 1,894.1 MTND over the same period in 2023. However, and unless there are surprises or unforeseen elements, there will be a catch-up in the December figures. According to the 2024 finance law, expected revenues for the entire year are 1,369 MTND, with adjustments suggesting 1,223 MTND.
In exchange for the 400 kilometers of pipeline that cross its territory, Tunisia receives a 5.25% toll on the transported gas, paid in dollars or gas.
This windfall comes from the agreement signed between Italy and Algeria, which consists of an increase in gas volumes transported via TransMed by 9 billion cubic meters per year in 2023-2024. The two countries have taken advantage of the additional transport capacity offered by the pipeline, which can reach an annual capacity of 32 billion cubic meters.
For 2025, expected revenues are expected to reach 1,250 MTND. The government expects 21 billion cubic meters to transit through the pipeline next year. These figures are realistic, especially since international markets are counting on a decrease in LNG prices throughout the exercise. We can, however, benefit from a volume effect, especially with supply disruptions from Russia.
It remains to be specified that Tunisian authorities may prefer to obtain gas quantities rather than currencies, given the great need for LNG. This will depend on the evolution of the tourist season and the good performance of the balance of payments, especially in the first half of the year.
