• Pipeline extension is estimated to be worth $2.4bn
  • Algeria’s National Society for Electricity & Gas has issued the tender
  • Algeria has seen a steady decline in hydrocarbon production over recent years

Algeria’s state-owned utility, the National Society for Electricity & Gas (Sonelgaz), has issued a tender for engineering consultancy services on a project to expand the country’s gas pipeline network by 1,446 kilometres.

The pipeline is expected to be worth in the region of $2.4bn and will be constructed in five packages:

  • Sidi Laadjel (Medea) – Ain Oussera (Djelfa): 62km with 42-inch-diameter pipe 
  • Hassi Messaoud (Ouargla) – El-Oued (El-Oued): 204km with 42-inch-diameter pipe 
  • Derrag (Medea) – Eucalyptus (Algiers): 180km with 48-inch-diameter pipe
  • Relizane (Relizane) – Saida (Sidon) – Naama (Naama): 380km with 48-inch-diameter pipe
  • Hassi R’Mel (Laghouat) – Sidi Laadjel (Medea): 370km with 48-inch-diameter pipe
  • Hassi R’Mel (Laghouat) – Chaiba (Biskra): 250km with 48-inch-diameter pipe

The scope of the work includes:

  • Laying of pipeline
  • Control systems 
  • Leak detection system 
  • Pumping stations  
  • Civil works 
  • Associated works

Algeria has seen a steady decline in hydrocarbon production over recent years amid reduced interest from foriegn oil companies.

In September 2014 Algeria saw awarded just four out of a possible 31 exploratory concession blocks awarded in the country’s most recent bid round.

The problem of declining production has been compounded by declining oil prices. The Opec basket price dopped from $108 a barrel in June 2014 to $55 in April 2015.

Algeria is currently lobbying for Opec to cut production in order to support higher prices.

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