Repsol and Gas Natural Awarded LNG Contracts in Algeria

Repsol YPF and Gas Natural SDG were awarded an integrated project for the joint exploration, production, and marketing of liquefied natural gas (LNG) in the Gassi Touil zone, in east Algeria, in a tender process promoted by the Algerian public company Sonatrach.

The consortium, in which Repsol YPF holds a 60% stake and Gas Natural SDG 40%, will make a joint investment of EUR1,628 million ($2.1 billion) in the awarded 30-year project.

The two companies, which began to work on this project in 2003, will produce the gas reserves already discovered in Gassi Touil, Rhourde Nouss, and Hamra, and will undertake exploration work in the awarded zone to discover additional oil and gas reserves for their subsequent development and production.

The project also contemplates the construction of a liquefied natural gas plant in Arzew, for jointly marketing the gas from the awarded production area. The liquefaction plant will have a 5.2 bcm/year of LNG capacity , equivalent to 20% of Spainīs domestic consumption, and could be enlarged in the future with a second train to optimise the project. This liquefaction plant could start commercial operations in 2009.


The Gassi Touil-Rhourde Nouss zone is adjacent to the Berkine basin, where the Repsol YPF (operator) and Gas Natural SDG consortium won a tender last July for oil and gas exploration in an area covering 4,831 Km2 (Gassi Chergui Ouest).

Winning this integrated gas exploration and production project provides the Gas Natural Group its first direct access to natural gas reserves to cover the market's growing gas demand.

Thanks to this award, Repsol YPF strengthens its leadership in Algeria, which, along with the other concessions in Libya, enhances the company's privileged position in the Maghreb.

Repsol YPF and Gas Natural SDG are among the leading liquefied natural gas suppliers in the world, with a significant presence in Spain and the United States, and the number one position in the Atlantic Basin. Algeria plays an important role in the providing gas to Spain, with that country supplying over 50% of the Spanish market's needs.

This transaction also contributes significant internal synergies with both companies' other exploration assets in Algeria, such as the previously mentioned Gassi Chergui Ouest block, adjacent to Gassi Touil, and Repsol YPF's assets in Reganne (where gas was already discovered) and M'Sari.

The Gassi Touil project is part of the Gas Natural SDG and Repsol YPF strategy to jointly study and develop, on a project-by-project basis, those integrated gas projects where both companies' combined efforts contribute added value.


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