LNG plant to boost foreign investment in Algeria, report says

A new US$4.49bn liquefied natural gas (LNG) plant to be built by Italy’s Snamprogetti and Japan’s Chiyoda in Algeria will provide new opportunities to foreign investors, according to BMIs latest Algeria Petrochemicals Report.

• The plant, with a capacity of 4.7mn tonnes per annum (tpa), will boost the availability of feedstock to the petrochemical industry, said the report.
• “The contract was signed with the Italian-Japanese consortiums on July 26 to carry out the construction of the facility in three years.”
• “Algeria’s energy group Sonatrach will fully finance the project at a cost of DZD227bn (US$4.49bn). Gas for the facility at Arzew (west of Algeria) will be sourced from Gassi Touil and Rhourd Nouss gas fields.”
• Earlier in August, Algerian Energy Minister Chakib Khelil said around US$45.5bn of energy investment projects are planned in Algeria in 2008-2012. Some US$35.8bn will come from Sonatrach and US$9.7bn from foreign partners.
•  These figures include upstream activities, pipelines and petrochemical projects.
• Entreprise Nationale de lIndustrie Petrochimique (ENIP), a unit of Sonatrach in charge of the petrochemicals sector, has plans for projects worth more than US$5bn for commissioning by 2010, BMIs Algeria Petrochemicals Report says.  
• The report shows optimism over a possible rise in proven oil and gas reserves due to recent oil discoveries, plans for more exploration drilling, improved data on existing fields and use of enhanced oil recovery schemes.