Highly solicited by its European gas partners in particular, Sonatrach wants to give itself the means of its regional and international energy strategy.
Algerian state-owned hydrocarbon company Sonatrach has awarded several contracts, including two to Italian-based engineering firms Tecnimont and Arkad. These contracts, budgeted at nearly 570 million dollars, are part of the company's energy policy, which is focused on stabilising and increasing the country's gas production.
The agreement signed with Tecnimont essentially covers the establishment of a liquefied petroleum gas (LPG) plant from the Rhourde El Baguel oil field in south-eastern Algeria. The plant will have a processing capacity of 10 million m3 of gas per day with an expected production of "The project is expected to produce 1,000 tonnes/d of LPG, 300 tonnes/d of condensate and 8.7 million m3/d of gas. Its construction is scheduled to last 36 months at a cost of approximately $400 million (54 billion Algerian dinars).
As regards the contract awarded to Arkad, it includes the realisation of "A new low-pressure compression unit and a gathering system to connect 24 new producing wells to the existing plant.
The works are financed to the tune of approximately $170 million and have a delivery time of 34 months. It is intended to support the development programme of the Tin Fouiyé Tabenkort gas field, operated by Sonatrach and TotalEnergies under the Groupement TFT (GTFT) joint venture.
"This project will maintain the production plateau at 11 million cubic metres per day, Sonatrach said in a statement. This objective is in line with the company's international contractual commitments in the gas sector.