Dubai-based Dodsal Group said it was awarded an engineering, procurement and construction contract from Algeria’s state energy firm Sonatrach for the separation and compression centre, part of a US$1.1 billion plant near South HGA-Hassi Messaoud.
The contract, which includes detailed engineering, procurement, construction and commissioning of the separation and compression centre, will begin shortly and is scheduled to be completed in 2020, Dosal said in a statement.
Upon completion, the plant will be producing at a capacity of 66,000 barrels per day.
Algeria’s Sonatrach is commissioning the build of three refineries in areas of Biskra, Tiaret, and Hassi Messaoud, each of which will have refining capacity of 5 million tonnes per year and will be configured to process domestic Algerian crude oil.
All three refineries will include the following processing capabilities and installations: LPG separation; hydrocracking; desulfurization; bitumen production; blending; effluents treatment; and utilities, storage tanks, shipping facilities, and administrative buildings.
“This order (will) … reinforces our presence in Algeria, which is a strategic market for Dodsal,” Dr. Rajen A. Kilachand, Dodsal Group chairman and president, said.
Algeria is Africa’s biggest natural-gas producer and a member of the Organization of Petroleum Exporting Countries. The country boosted its gas exports in 2016 and plans to increase gas output to 141.3 billion cubic meters (bcm) this year and 143.9 bcm in 2018, from 132.2 bcm in 2016. Sonatrach’s exports generate more than half of the government’s budget revenue.
Dodsal has been executing EPC projects for over five decades in the energy, industrial and infrastructure sectors across the Middle East, Europe, North and East Africa, the Indian Subcontinent and South-East Asia.
The UAE-based group has executed other projects in Algeria, such as the construction of the Skikda LNG Project in 2009, and has since been awarded its third major EPC contract by Sonatrach.