The UK’s Petrofac has been awarded a $976m contract to build a gas processing plant at the North Reggane project in southwestern Algeria.

The engineering, procurement and construction (EPC) contract was awarded by the Groupement Reggane joint venture; a partnership of Algeria’s state-owned Sonatrach, Spain’s Repsol, Germany-based RWE Dea and Italian group Edison.

Petrofac has been contracted to complete the work with the next three years.

The scope of the contract includes the construction of the gas treatment plant, gas gathering system and an export pipeline, with the project having a processing capacity of 283 million cubic feet a day (cf/d).

The project is located in the Reggane basin on the Algerian Sahara desert 1,500 kilometres southwest of Algiers. It will bring onstream 26 wells from four fields – Reggane, Kahlouche, Kahlouche South and Azrafil South East.

Front-end engineering and design (feed) work on North Reggane was carried out by Repsol.

The development of Algeria’s southwest gas assets is essential for the North African country to meet higher domestic demand and supply commitments to the EU. It will also help Algeria push through plans to expand its petrochemicals sector.

Petrofac is also carrying out EPC work in Algeria at the Southern fields development project for the joint venture In Salah Gas and the Alrar gas field development for Sonatrach.