Algeria's Sonatrach signs $ 1 billion gas plant deal


India-based conglomerate Larsen & Toubro has signed an agreement with Algerian state-owned Sonatrach to develop new gas treatment and compression plants on pre-existing gas fields in the North African nation.

The agreement includes detailed engineering studies, supply management of materials for construction, trials and commissioning, training of personnel and operational assistance.

The plant will produce 11 million cubic meters of gas per day, according to Abdelmoumen Ould Kadour, Sonatrach CEO.

Larsen & Toubro did not disclose the value of the contract, but described the project in a statement as a "Mega" project.

According to the company's Director of Engineering and Project Management Faiz Zane, the total cost of the project will slightly exceed $ 1 billion and is scheduled to start operations in June 2024.

This agreement comes a few weeks after Minister of Energy, Mustapha Guitouni, announced that Algeria's interior energy demand could be restrained the country's gas exports within the next three years. Algeria's gas output was 135 trillion cubic meters for all in 2018.

Algeria is Europe's third largest gas supplier, after Russia and Norway, with Spain depending on the country.


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