Sonatrach Lays Foundation for Skikda LNG Production Plant and Awards Contract

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Researched by Industrial Info Resources (Sugar Land, Texas)--State-owned oil company Sonatrach (Hydra, Algeria) is currently laying the foundation for a 4.5 million-ton-per-year liquefied-natural-gas (LNG) production train in Skikda, Algeria. The new LNG train will replace the three LNG production trains destroyed in an explosion on January 19, 2004, that killed 27 people and injured 74 others. The new production train will consolidate the former three trains, production-wise, into a single state-of--the art train.

Site preparation for the Skikda LNG train began late last year after Sonatrach had awarded the KBR Incorporated (NYSE:KBR) (Houston, Texas) the engineering, procurement and construction contract for the project. The contract is valued at $2.8 billion. In addition to LNG, the Skikda facility will produce liquefied petroleum gases and condensate for export.

Sonatrach expects to complete the Skikda LNG plant and have it in service in late 2011. LNG sales from the Skikda facility will go to Distrigaz (Belgium), Gas de France (France), DEPA, (Greece), Snam (Italy), Enagas (Spain), Botas (Turkey), Duke Energy (NYSE:DUK) (Charlotte, North Carolina), Tractebel and occasional spot cargos to Turkey and Spain.

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