Dodsal Group signs US$1.1bn gas-oil separation plant project in Algeria

Siege de la SONATRACH a Oran AlgerieSonatrach is making bold strides in terms of gas industry development. (Image Source: Maya-Anais Yataghene/Wikimedia Commons)The Dodsal Group, a Dubai-based business conglomerate currently operating in countries across MENA, East Africa and India, has been awarded an engineering, procurement and construction (EPC) contract worth US$1.1bn from Algeria’s Sonatrach to execute a separation and compression centre (CSC) at the periphery area of South HGA-Hassi Messaoud

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 bpd.

Dodsal Group chairman Dr. Rajen A. Kilachand said, “This order further strengthens our long-term relationship with Sonatrach and also reinforces our presence in Algeria, which is a strategic market for Dodsal. We are proud to continue our association with Sonatrach and are looking forward to working closely with them to successfully deliver this project.”

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 141.3bn cu/m this year and 143.9bn cu/m in 2018, from 132.2bn cu/m 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. 

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