Algeria asks contractors to prequalify for $1bn gas plant

03 February 2016

Facility is due to be constructed at Rhourde el-Baguel oil field

Algeria has invited contractors to prequalify for the main contract for a liquefied petroleum gas (LPG) plant, which will be constructed at Rhourde el-Baguel, an oil field located in the Ouargla province.

The project owner is state-owned oil company Sonatrach and the project’s budget is estimated to be worth $1bn.

According to documents released by Sonatrach, the scope of the project includes:

  • Booster compressors
  • Gas dehydration units
  • Gas treatment plant including liquids separation and stabilisation
  • LPG storage and export pipeline

The invitation to prequalify was sent to contractors on 24 January.

The deadline for submissions is 7 February and engineering, procurement and construction (EPC) tender documentation will be given to the selected firms during the first quarter of 2016.

Companies looking to bid are required to have executed at least two similar projects and have an average turnover of $1bn for the past three years.

According to industry sources, companies likely to be keen to bid for the project include Japan’s Chiyoda Corporation, UK-based Petrofac, South Korea’s Hyundai, and Japan’s JGC Corporation.

The front-end engineering and design (feed) deal has been awarded to Spain’s Tecnicas Reunidas.

The Rhourde el-Baguel oil field produces about 35,000 barrels a day (b/d) of oil. The UK’s BP was formerly a partner in the field, but left in 2012.

The new LPG unit is expected to process 20 million cubic metres a day (cm/d) of associated gas and the offtake will be used for enhanced oil recovery (EOR) purposes for the field.

The contract is being coordinated by Sonatrach’s engineering and construction division.

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