Algeria sells two thirds of its gas to Europe via either the Trans-Mediterranean (Transmed) pipeline which was completed in 1983 and has a capacity of 24 bcm/y through which Algeria supplies Italy or through the 8.5 bcm/y Maghreb-Europe Gas Pipeline (MEG) which was completed in 1996 and through which Algeria supplies Spain. A third pipeline, the Medgaz pipeline with a initial capacity of 4 bcm/y to be increased to 16 bcm/y to link Algeria to Spain and France is under construction. Most of the gas that is sold from Algeria to Europe is linked to crude oil prices