Thursday 31 July 2014
 
»
 
»
Story

Italy-Japan consortium wins Algeria LNG deal

Algiers, July 27, 2008

Algeria's state energy conglomerate Sonatrach, on Sunday, said that it has signed a contract with a consortium of Italy's Snamprogetti and Japanese Chiyoda Corp to build an LNG plant.

The 277 billion Algerian dinars ($4.49 billion) contract is for the construction of a liquefied natural gas train in the western Mediterranean port of Arzew with a production capacity of 4.7 million tonnes a year, the statement said.

The project, to be financed 100 percent by Sonatrach and to be fed by gas from Algeria's Gassi Touil and Rhourd Nouss gas fields, is part of Algeria's plans to raise gas exports to 85 billion cubic metres a year in 2012 from 62 billion at present.

The plant is to be built in 48 months under the terms of the contract, which was signed on Saturday, said Sonatrach, Africa's biggest gas exporter and biggest company by revenue.

Sonatrach had provisionally awarded the work to a consortium of Britain's Petrofac and Indonesia's IKPT on July 12, for the construction of a plant with a production capacity of 4.3 million tonnes a year.

Sonatrach at the time gave the two companies 10 days to provide guarantees they could build the train in 50 months within the price they had offered.

But on July 22 Sonatrach announced documents subsequently submitted by Petrofac and IKPT did not meet Sonatrach's requirements and Sonatrach would open discussions on the work with the Snamprogetti-Chiyoda consortium, the runners-up in the tender competition. - Reuters 




Tags: LNG | Algeria | Italy | consortium |

More Energy, Oil & Gas Stories

calendarCalendar of Events

Ads

Buy high quality China wholesale Health & Beauty , Electronics, Sports & Outdoors , Computers, Video Games, Toys & Hobbies Cell Phones, Automobiles and other wholesale products directly from reliable Chinese wholesalers or Factories on DHgate.com