Algeria's Sonatrach has let three major contracts for refurbishment and expansion of its three largest gas liquefaction plants.
Contracts awarded to Gaz de France (GdF) engineering affiliate Sofregaz, M.W. Kellogg Co., and Bechtel International Inc. carry a value of about $600 million.
Their initial aim is to restore the plants to their original combined capacity of 1.02 tcf/year. The contracts also provide for capacity expansion at the three plants to 1.23 tcf/year in the mid-1990's.
Poor maintenance procedures have cut operations of the three plants to about 5060% of the original design capacity.
Algeria is the world's No. 1 LNG producer.
Sonatrach has 21 trains of production capacity in four complexes at Skikda, Arzew, and Bethioua.
Algeria is GdF's largest gas supplier. Last year it accounted for 30.9% of GdF's supply with 318.9 bcf, down slightly from the 1988 volume.
The three phase GdF contract, worth $176.6 million, covers the Skikda GL1-K LNG complex in eastern Algeria.
In the first phase Sofregaz will conduct a technical assessment of what needs to be done. In the second phase Sofregaz will return the unit to its original 275.4 bcf/year capacity during 1991-92. And in the final stage of the contract, capacity will be increased to 350 bcf/year in 1994.
The Bechtel contract covers a 1 year technical audit and subsequent engineering/construction management for the 370.8 bcf/year, six train, GL1-Z plant located at Bethioua.
Bechtel estimates the project could require 4 years, but the time will depend on how much renovation will be needed.
Bechtel built the plant in the late 1970's.
Kellogg will work on the Arzew GL2-Z, which also has a design capacity of 370.8 bcf/year.
GdF Pres. Francis Gutmann said the Sonatrach contract is in line with the trend of developing partnerships between gas suppliers and customers worldwide. The French company offered 100% financing for its engineering contract.
In addition, Algeria is consulting GdF on the first stage of its proposed Algeria-Morocco-Spain gas pipeline in which France is not involved.
GdF also has 12 joint venture agreements under negotiation with the Soviet Union, its second largest gas supplier, involving gas transmission and distribution systems, as well as manufacture of equipment.
Gutmann said the Soviet Union might not be able to maintain its export volumes long term because of rapidly growing internal demand.
Nigerian LNG is the best prospect for future supply, he said. GdF is lined up to take 17.6 bcf/year from the first phase of the Nigerian project. Increased liftings will depend on prices.
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