Algeria gas project advances

June 16, 2009
Algeria’s Sonatrach has hired Canada’s SNC-Lavalin Group Inc., Montreal, to build natural gas handling facilities in eastern Algeria.

Warren R. True
OGJ Chief Technology Editor-LNG/Gas Processing

HOUSTON, June 16 -- Algeria’s Sonatrach has hired Canada’s SNC-Lavalin Group Inc., Montreal, to build natural gas handling facilities in eastern Algeria.

The Algerian state company awarded SNC a $1.1 billion, 39-month contract to build a gas gathering system, gas processing plant, and carbon dioxide reinjection facilities to serve four fields: Rhourde Nouss Central, Rhourde Nouss Southwest, Rhourde Adra, and Rhourde Adra South. The gas processing plant will be at nearby Qartzites de Hamra.

Due for completion in 2012, the project will allow Sonatrach to process and treat about 353 MMscfd, which would generate, according to Algerian Oil Minister Chakib Khelil, about $500 million/year in export revenues. The project will also produce 16,000 b/d of condensate, according to other published reports.

Residue gas from the plant will move more than 1,000 km to Arzew, on Algeria’s northwestern Mediterranean coast, where Sonatrach is building a 4.7-million tonne/day train to come online in 2012. That project will expand the already installed 16.4 million tonnes/year of LNG production capacity at that site.

Contact Warren R. True at [email protected].