US-based engineering firm CB&I Lummus has been awarded the front end engineering and design (feed) contract for the $2bn project to develop Ain Tsila, an Algerian gas condensate field located in the Illizi basin.

The contract was granted by Groupement Isarene, a joint venture between state-owned oil company Sonatrach, Irish energy company Petroceltic International and Italy-based Enel Trade.

The scope of work includes feed development for a 420 million cubic-feet-a-day (cf/d) gas plant, plus three associated pipelines and well collection.

The facility will include a gas processing plant with water separation, condensate and liquefied petroleum gas (LPG) recovery equipment, gas compression, export pumps and metering facilities.

The feed contract was initially planned for award in the first quarter of 2014, but was postponed due to delays in finalising terms and conditions for the process.

The engineering, procurement and construction (EPC) deal for the development is due to be awarded in 2015, with construction starting in the second half of the year and first gas due in 2018.

Petroceltic is currently overseeing the scheme on behalf of the two other partners and the cost will be split between the partners. Petroceltic has a 38.25 per cent interest in the field.

Algeria is currently preparing for an oil and gas licensing round, with bids due on 30 September. The country’s last oil and gas licensing round took place in 2011 and saw just two permits awarded out of the 10 on offer, making it the third in a row to see little enthusiasm from oil companies.