Saipem has won a new onshore contract in Algeria worth approximately US $580 million.
Algerian oil company Sonatrach awarded Saipem the EPC contract for gas pipeline GK3 -- lot 3, covering the engineering, procurement and construction of a gas transportation system.
Lot 3 encompasses a 48-inch gas pipeline system from Mechtatine to Tamlouka in the northeast of Algeria, then connecting the latter to Skikda and El-Kala, located on the northeastern coast of the country, for a total length of approximately 350 kilometers. The work will be completed in a 26 month period.
The overall GK3 project will allow Sonatrach to expand its gas transport capacity to 9 billion cubic meters per year in order to provide the gas necessary to feed the future GALSI export gas line, which will connect Algeria to mainland Italy via Sardinia, as well as the new LNG train in Skikda and two power plants.
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