Sonatrach and Sinopec sign Skikda LNG storage tank deal

Algerian LNG export terminal operator Sonatrach has awarded a contract to Chinese group Sinopec for the construction of a new LNG storage tank for the Skikda LNG facility.

On 17 February 2022, Sonatrach has signed this contract with units of Sinopec; Sinopec Luoyang Engineering (LPEC) and Sinopec International Petroleum Services Corporation (SIPS), specifically.

The contract is worth nearly $177.7 million. It will last for a period of about 40 months.

Under the deal, Sinopec will build the 150,000 cubic metres storage tank at Algeria’s eastern gas export terminal of Skikda. In addition, it will dismantle the two existing tanks at Skida LNG.

The LNG plant at Skikda has a capacity of 4 million metric tonnes per year (mtpa) of LNG.

The project also includes the supply and installation of equipment for the connection of the future storage tank to the new LNG loading system of the new Skikda jetty. This project is a part of the oil port expansion.

This will allow for the removal and significant rotations of export LNG vessels.

Once delivered, this project will increase Sonatrac’s LNG storage capacity and increase the related export capacity as well. The company has ambitions to consolidate its position as a regional leader in LNG production.

Sonatrach operates four LNG production facilities in Algeria, three at Arzew and one at Skikda, with a total capacity of 24.7 mtpa.