LPG Expansion Promises Construction Contracts

LPG expansion promises construction contracts

State energy company Sonatrach is moving ahead with a five-year plan to double liquefied petroleum gas (LPG) output. This will include building extraction and other facilities in 10 fields, 1,000 kilometres of pipeline and the long-planned "Jumbo" LPG plant in Arzew.

Tenders for two LPG units have been issued and the rest are due in the next few months. Sonatrach forecasts a sharp upturn in LPG production in the mid-1990s, with the Jumbo unit coming on stream in 1995. Senior officials say they are open to offers on financing and, for the first time, would favour joint ventures as well as the mobilisation of conventional export credits.

The scheme has three main elements, which together could cost over $2,500 million: * Construction of 10 extraction and processing plants between 1992-97. The cost of each is estimated at $100 million-200 million. Tenders have been issued for units at Oued Noumer and Ain Amenas, the former to treat 7 million cubic metres of gas a day (MEED 13:7:90). Also planned are units in Hamra, where Total (Compagnie Francaise des Petroles) has a longawaited condensate scheme; Alrar Quest, where a 6.7 million-tonne processing plant is reportedly planned; Hassi Messaoud …

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Publication information: Article title: LPG Expansion Promises Construction Contracts. Contributors: Not available. Magazine title: MEED Middle East Economic Digest. Volume: 34. Issue: 45 Publication date: November 16, 1990. Page number: 16. © 1999 MEED Middle East Economic Digest. All Rights Reserved. COPYRIGHT 1990 Gale Group.

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