RWE AG's (RWE.XE) natural gas transmission grid operator Thyssengas GmbH said Tuesday it is continuing with its plans to build a 520-kilometer gas pipeline from northern Germany to Belgium after a market test showed strong demand.

Numerous market players have registered their interest in transmission capacity along the planned pipeline in the non-binding market test, in which Thyssengas gauged demand for the pipeline, the company said in an emailed statement.

"In 2011 we plan to conduct an open season process to gain reliable figures concerning the additional demand for transmission capacity...," said Chief Executive Wandulf Kaufmann in the statement.

In the open season process, customers can book transmission capacity requirements for which they expressed interest during the market test.

The company added it will now begin the technical planning phase of the project, adding that talks with the relevant authorities have already started.

On May 28, Thyssengas had said it plans to invest EUR1.3 billion in the pipeline from Emden on the German North Sea coast to Eynatten on the Belgian-German border.

"If a decision concerning the necessary investment can be reached by mid 2013, the new natural gas pipeline could be finished by 2016...," Kaufmann said.

The planned pipeline will have a transport capacity of around 8 billion cubic meters, Thyssengas said.

RWE-- Germany 's second largest utility by market value behind E.ON AG (EOAN.XE)--has committed itself to selling Thyssengas in a deal struck with the European Commission last year. In return, the commission dropped an antitrust investigation against the company over alleged market abuse.
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