India’s Larsen & Toubro to build gas plants in Algeria

Image: Javelin Technologies

Mumbai-based conglomerate Larsen & Toubro, through its subsidiary Larsen & Toubro Hydrocarbon Engineering Limited India (LTHE), signed an agreement with state-owned Sonatrach on Monday to develop three new gas treatment and compression plants on pre-existing gas fields, southwest of the country.

The fields involved in the deal are the Hassi Ba Hamou and Reg Mouaded Field, Hassi Tidjerane Field and Tinerkouk Field.

The engineering, procurement and construction contract comprises detailed engineering studies, supply management of materials for the construction, trials and commissioning, training of personnel and operational assistance.

Sonatrach’s Director of Engineering and Project Management Faiz Zane said that the project aims to reach a combined production of 11 cubic meters per day of commercial gas. Adding that the total cost of the project will slightly surpass $1 billion and is scheduled to start operations in June 2024.

“The project shows we still have gas and we can raise output in the coming years,” stated Abdelmoumen Ould Kadour, Chief Executive Officer of Sonatrach.

This agreement comes a few weeks after Minister of Energy, Mustapha Guitouni, announced that Algeria’s interior energy demand could restrain the country’s gas exports within the next three years. In order to keep its top ranking as a natural gas supplier, Sonatrach will have to multiply such initiatives to increase production, which reached 135 billion cubic meters last year.