M.W. Kellogg Co. has started engineering and procurement for a $500 million upgrade of a natural gas liquefaction complex at Bethioua, Algeria.
Kellogg believes the project for state owned Sonatrach is among the largest LNG renovations in the world. Kellogg's action follows funding approval by the U.S. Export-Import Bank and other international credit agencies.
Kellogg's contract covers Sonatrach's GL2/Z complex, part of an overall program by Sonatrach to renovate and increase capacity of its LNG facilities.
Kellogg will completely refurbish the Sonatrach complex to reestablish original nameplate capacity, increase reliability of the complex, and debottleneck to achieve a higher design capacity.
The work, expected to last about 3 years, follows an audit by Kellogg and Sonatrach to determine the project scope. Kellogg also worked with Sonatrach to arrange project financing in the U.S., Japan, Canada, Belgium, and U.K.
The project scope includes installation of more boilers, desalination units, replacement of selected exchangers, and converting the control system to a distributed control system while minimizing disruption of plant operations.
Kellogg called upgrading of maintenance and operation systems, as well as implementation of a training program, high priorities.
GL2/Z, near Arzew, has a design capacity of 1 bcfd of LNG.
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