A Japanese consortium of Ishikawajima-Harima Heavy Industries and Itochu Corporation have signed a $1,100 million deal to build three liquefied petroleum gas (LPG) trains in Arzew.

The engineering, procurement and construction contract calls for three 1 million-tonne-a-year (t/y) LPG separation trains and two 70,000-square-metre storage containers.

The facility is expected to produce 3 million t/y of propane and butane.

The new trains will be integrated into an existing facility at Arzew, with feedstock to come from the neighbouring Bethioua LPG terminal.

The project, which will be financed by state energy company Sonatrach, should come on stream in 2010.