The 8 billion cubic metre Medgaz pipeline will not begin pumping gas from Algeria to Spain until the middle of 2010, Spanish gas company Gas Natural (GAS.MC) said on Wednesday.

Gas Natural has been in talks to take a 10-percent stake in the Medgaz consortium, whose shareholders include Algerian state oil company Sonatrach, Spain's Cepsa (CEP.MC), Iberdrola (IBE.MC) and Endesa (ELE.MC) and France's GDF Suez (GSZ.PA).