State-owned Algerian energy company Sonatrach has awarded contracts worth US$1.4 billion to Saipem and Petrojet for the construction of a gas pipeline in the North African country.
Ina statement Sonatrach announced that Saipem, the oilfield services arm of Italian oil giant Eni and the Egyptian company Petrojet would each build a section of the GK3 pipeline.
The pipeline would run from the giant gas field Hassi R’Mel to El Kala, a total of 784km, and boost capacity of the field to 9 billion cubic metres per annum.
Petrojet will build the first two sections of the pipeline running from Hassi R’Mel to Mechatine, a total of 433km. Saipem would build the remaining section to Skikda port and El Kala, a total of 351km.
The additional capacity will be used to feed two Algerian power stations, the domestic gas network, a liquefied natural gas terminal and also supply gas for the planned Galsi pipeline running from the North African state to Italy via Sardinia.
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