Saipem Awarded $580 Million Algerian Contract

July 2009 Vol. 236 No. 7

Algerian oil company Sonatrach awarded Saipem a contract valued at US$580 million for the engineering, procurement and construction of the GK3-Lot 3 gas transportation system.

The 48-inch pipeline system will extend from Mechtatine to Tamlouka in northeast Algeria, then connect the latter to Skikda and El-Kala, located on the northeastern coast, for a total length of 219-miles.

The work will be completed in a 26 month period.
The overall GK3 project will allow Sonatrach to expand its gas transport capacity to 9 Bcm/y in order to provide the gas necessary to feed the future GALSI export gas line, which will connect Algeria to mainland Italy via Sardinia, as well as the new LNG train in Skikda and two power plants.

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