The Algerian oil and gas group Sonatrach has announced the signing of a contract worth nearly 400 million euros with the Italian company Tecnimont for an LPG (liquefied petroleum gas) extraction plant in the Algerian Sahara.
Algeria: Sonatrach is on the right track
The plant will make it possible to develop the Rhourd el Bagel hydrocarbon field in Hassi Messaoud, a commune in the wilaya of Ouargla, in southeastern Algeria, Sonatrach indicated in and statement Thursday, October 27. “The projected processing capacity of this plant is 10 million m3/d of associated gas, allowing the production of 1,000 tonnes/d of LPG, 300 tonnes/d of condensate and 8.7 million m³/d of gas, for a completion period of 36 months”.
Reserves of 2,400 billion m³
In addition, within the framework of the development of hydrocarbons at the level of the gas field of Tin Fouyé Tabankort, in the prefecture of Illizi (south-east), a second contract, for an amount of 24 billion dinars (170.9 million euros), was signed between the TFT Group (Sonatrach-TotalEnergies) and the Italian company Arkad.
Algerian gas: how Sonatrach wants to increase prices for its European customers
This second contract concerns the construction of a new low-pressure compression unit, a collection network allowing the connection of 24 new producing wells at the existing plant, as well as the overhaul of the current facilities. This project, whose completion time is 34 months, will allow the gas production plateau to be maintained at 11 million m³.
Algeria, whose proven reserves of natural gas amount to nearly 2,400 billion m³, supplies around 11% of the gas consumed in Europe, compared to 47% for Russia. The Maghreb country is the first African exporter of natural gas and the seventh in the world. Several countries, especially European ones, seeking to reduce their dependence on Russian supplies since the invasion of Ukraine have turned to Algeria, but experts have questioned the North African country’s ability to increase production to court term.