Orascom wins Skikda gas construction work

25 June 2008
The US’ KBR has awarded a sub-contract to Egypt’s Orascom Construction Industries on Sonatrach’s new 4.5 million-tonne-a-year liquefied natural gas (LNG) plant at Skikda in the north-east of Algeria.

KBR, which is carrying out the engineering, procurement and construction (EPC) contract for the state-run firm, says Orascom’s work will cover civil works and piling installation for the LNG train.

The civil works contract is expected to take about 14 months to complete with the piling and installation job to take approximately 10 months in conjunction with Italy’s Trevi Group.

After more than 18 months of negotiations, Sonatrach and KBR signed a cost-reimbursible contract last year worth almost $3bn. But the squeeze on the contracting market means that project execution is likely to take about 50 months, with the first gas to be delivered in 2012.

The project will be entirely equity funded by Sonatrach (MEED 23:2:07).

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications