SNC-Lavalin bags 1.1 bln dlr contract in Algeria


July 15, 2010 Updated Jun 14, 2009 at 9:41 PM CDT

Algeria's national oil company Sonatrach announced it had awarded a 79.3-billion-dinar (1.11-billion-dollar, 793-million-euro) contract to the Canadian engineering firm SNC-Lavalin to build natural gas processing facilities.

Under the contract SNC-Lavalin is to build infrastructure to collect gas at four southern fields as well as a natural gas processing facility and a facility to process and reinject carbon dioxide into gas fields, Sonotrach said in a statement.

"These installations will permit beginning around 2012 to produce and process 3.5 billion cubic metres of natural gas per year, quantities which should earn 500 million dollars from export," Engery Minister Chakib Khelil was quoted as saying by Algeria's APS news agency.

The natural gas will flow to the Arzew liquefied natural gas processing facility that is being built near the Mediterranean coastal city of Oran, which should allow Sonatrach to boost exports from 62 billion cubic metres per year currently to 85 billion from 2014, said Khelil.

Under the 39-month contract SNC-Lavalin is to build gas collection infrastructure at Rhourde Nouss Central, Rhourde Nouss South/East, Rhourde Adra and Rhourde Adra South fields.

The Canadian company is to build a gas processing facility at Qartzites de Hamra.

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