Sonatrach awards Skikda LNG tank gig to Sinopec

Algerian state energy firm Sonatrach has awarded a contract to units of China’s state-controlled giant Sinopec to build one storage tank at its Skikda LNG export plant.

Sonatrach said in a statement on Thursday it signed the contract with Sinopec Luoyang
Engineering Co. Ltd and Sinopec International Petroleum Services Corporation.

The contract has a price tag of almost 25 billion dinar ($177.7 million) and will last about 40 months.

Under this deal, the Chinese group would build a new LNG storage tank with a nominal capacity of 150,000 cbm at the Skikda GL1K liquefaction complex, Sonatrach said.

Prior to this, the contractor would dismantle two existing tanks at the LNG export plant, the Algerian firm said.

The deal also includes the supply and installation of equipment for the connection of the future storage tank to the LNG loading system of the new Skikda jetty.

Sonatrach said the jetty project is a part of the petroleum harbor expansion.

“This will allow for the removal and significant rotations of export LNG vessels,” it said.

Once commissioned, this project would raise Sonatrach’s LNG storage capacity and strengthen the company’s LNG export capacity, the firm said.

Last year, Sonatrach and Sinopec signed a deal to collaborate in a number of areas, including LNG.

Algeria became the world’s first LNG producer in 1964 when Sonatrach’s Arzew facility came online.

According to GIIGNL data, Algeria currently has about 25.3 mtpa operational LNG export capacity at Arzew and Skikda.

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