Algerian oil company Sonatrach and joint venture partner Chiyodahas have awarded Milan-based engineering outfit Saipem an onshore contract in Algeria worth € 2.8 billion.

The lump sum turn key contract is for the new Arzew liquefied natural gas Train GL3Z project. The contract encompasses the engineering, procurement and construction for a single-train gas liquefaction LNG plant with a capacity of 4.7 million tonnes of LNG per annum, to be constructed near the Algerian city of Arzew, about 400 kilometres west of Algiers.

This is the first time that Saipem has been named as the main contractor of a LNG plant, asserting its reputation as an integrated player, capable of managing large and complex turnkey projects in the high tech market of the LNG sector.

The works for the new Arzew LNG Train (GL3Z) will be completed by the end of 2012.

Tags: Saipem, Sonatrach