Algerias gas pipeline project received a boost with the awarding of a US$1.1bn engineering, procurement and construction (EPC) contract to the Dodsal Group, a Dubai-based conglomerate

This is the third major EPC contract awarded to the Dodsal Group by Sonatrach, the Algerian national energy producer. Other contracts include the construction of the Skikda LNG project in 2009. For this latest contract, the Dodsal Group will execute a separation and compression centre at the periphery area of South HGA-Hassi Messaoud.

The work will involve detailed engineering, procurement, and commissioning of the plant. Work will begin shortly and it is scheduled to be completed by 2020. It is expected that when the project is complete, the plant will be producing at a capacity of 60,000 barrels per day.

Algeria is Africa’s biggest natural-gas producer and an OPEC member.  The country increased its gas exports in 2016 and plans to up gas output to 141.3 bcm this year and 143.9 bcm in 2018, from 132.2 bcm in 2016. Sonatrach’s exports generate more than half of the government’s budget revenue. Last December, the Algerian gas industry was bolstered by an agreement for the 2016/2016 gas year for commercial terms on a gas supply contract with Italian major, Eni. The agreement covers almost 20 per cent of the gas imported into Italy.