Algiers – Algeria’s national petrochemicals firm Sonatrach said on Thursday it had signed deals worth around $600 million with Italian companies to extract and transport liquefied petroleum gas (LPG).
Africa’s biggest natural gas exporter, Algeria is seeking to fill a gap in supplies to nearby European markets after Russia’s invasion of Ukraine rocked global energy markets.
Sonatrach said it had reached a $400 million deal with Italian firm Tecnimont for the building of an LPG extraction plant, to be built within three years.
The plant is to produce some “1 000 tonnes per day of LPG, 300 tonnes per day of condensate and 8.7 million cubic metres per day of gas,” it said.
#Algeria‘s national petrochemicals firm #Sonatrach said Thursday it had signed deals worth around $600 million with Italian companies to extract and transport liquefied petroleum gas (#LPG). @sonatrach_dz pic.twitter.com/HMBzq7iWW7
— TRENDS (@mena_trends) October 27, 2022
Algerian pipelines firm ENAC will also build a 65-kilometre (40-mile) conduit to link the plant to an existing transportation network in the country’s east, Sonatrach said.
Separately, a consortium owned by Sonatrach and France’s TotalEnergies signed a $170-million deal with Italy’s Arkad to build a unit linking 24 new wells to an existing plant.
It also announced three smaller deals for LPG-related infrastructure and equipment.
Natural gas prices have more than doubled in Europe since Russia’s February invasion of Ukraine, as Russia cuts back supplies in suspected retaliation against Western sanctions.
Algeria has signed a flurry of deals with southern European governments and energy firms seeking to offset the fallout, but experts have cast doubt over its ability to boost production in the short term.
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Source: AFP
Picture: Unsplash
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