GAS INFRASTRUCTURE D

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Associated gas production from the El-Borma oil field is declining rapidly as this field nears depletion. As a result, the Gabes region, the main industrial center in southern Tunisia, will face a significant energy supply deficit by 1993, since it depends on this associated gas for fuel supply. Bank analyses have confirmed that it would be more economic to continue to supply Gabes and its region with natural gas rather than convert existing industries to fuel oil and transfer some of STEG's (Tunisian Company for Electricity and Gas) power generation facilities in Gabes further north on the TMP (Trans-Mediterranean Pipeline). The project will provide a least-cost energy supply alternative for Gabes and other gas markets along the pipeline route. A gas infrastructure network in the southern part of the country to facilitate domestic gas field development will be established. The increased use of natural gas in the industrial and premium fuels markets will be promoted. In addition, the project will develop a sound gas subsector strategy while rationalizing and strengthening the subsector's institutional model. A modern supervisory control and data acquisition (SCADA) system will be developed to enhance the security of the gas supply.