Two contracts signed between the Algerian Sonatrach and two Italian companies worth 600 million euros – Hoy 24

The Algerian Oil and Gas Company (Sonatrach) signed two contracts worth 600 million euros with two Italian companies to build a liquefied gas plant and transport it by pipeline, as announced on Thursday by a statement from the Algerian group.

Sonatrach said in its statement that it had signed “two development contracts in the form of engineering, supply and construction with each of the Italian companies Technimont and Arcad.”

He explained that the contract with “Technimont” aims to “develop the hydrocarbon field + Ghard El Bal +, to extract liquefied petroleum gas, with a value equivalent to 56,000 million Algerian dinars (about 400 million euros)” and with a limited lead time. to three years.

The expected processing capacity of this plant is 10 million cubic meters per day of associated gas, which will allow it to produce 1,000 tons per day of liquefied petroleum gas, 300 tons per day of condensate and 8.7 million cubic meters per day. day of gas, according to the declaration.

Sonatrach’s subsidiary, the National Canal Corporation, will complete a 14-inch pipeline over a distance of 65 km, to transport the liquefied petroleum gas produced by this plant to the LPG transport network in Hassi Messaoud, the largest oil field from southern Algeria.

This project will cost 9.9 billion dinars (71 million euros) over a period of 20 months.

Sonatrach and its French partner, Total Energy, on behalf of the “Tin Foy Tebencourt” gas complex, signed a contract with the Italian company “Arcad” “related to the completion of a new low pressure unit and a collection network that allows the connection of 24 new production wells” to the gas complex plant and the modernization of its facilities.

According to the Algerian oil and gas giant, this project “will make it possible to maintain the production threshold at the level of 11 million cubic meters per day.”

The value of the contract amounted to 24,000 million dinars (about 170 million euros) for an estimated execution period of 34 months.

The Algerian government had announced an “urgent program” to increase gas production after high demand, especially from Europe, due to the paralysis of Russian gas supplies.

Algeria is Africa’s leading gas exporter and supplies Europe, especially through two gas pipelines to Italy and Spain, with around 11 percent of its needs.