Uchenna Izundu
International Editor
LONDON, Dec. 5 -- France and Algeria have signed several natural gas deals as French President Nicolas Sarkozy sought to establish closer ties on his first state visit to the former French colony.
Sonatrach will continue to supply LNG to Gaz de France during 2013-19 under an extended contract signed in Algiers Dec. 4.
The agreement, valued at €2.5 billion/year, means that Algeria will remain a key supplier, accounting for 10 billion cu m in 2006.
Gaz de France also hopes to receive the Algerian government's approval in early 2008 for its development plan for Touat gas field, in which it holds a 75% stake, in the Sbaa basin. Investment is expected to hit $1 billion, but discussions surrounding the construction of an 800 km gas pipeline are not yet finalized. Field production is scheduled to begin in 2011.
In 2006 Gaz de France signed up for 1 billion cu m/year of gas to be delivered through the proposed Medgaz pipeline, which is to start deliveries in 2009. The pipeline will send Algerian gas to Spain. Gaz de France has a 12% share in the project and a 20 year supply contract.
Algeria's state-owned gas and power company Sonelgaz let a €1.3 billion turnkey contract to Alstom and Egyptian Orascom Construction Industries to build a 1,200 Mw gas-fired power plant in Terga, 600 km from Algiers. Operations are expected to start in 3 years.
"Alstom will supply a full turnkey, combined-cycle power plant integrating in-house core plant components built around its advanced class GT26 gas turbine with best operational flexibility," Alstom said.
Contact Uchenna Izundu at [email protected].
