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Saipem bags $580m Algeria pipe deal / Contract award
5 juin 2009
Saipem has won a new onshore pipeline contract in Algeria valued at $580 million.
SONATRACH awarded Saipem the engineering, procurement and construction contract for gas pipeline GK3 – lot 3.
Lot 3 encompasses a 48-inch gas pipeline system from Mechtatine to Tamlouka in the northeast of Algeria. From Tamlouka the pipeline will then stretch to Skikda and El-Kala, which lie along the north-eastern coast of the country.
The Total length of the pipeline will be 350 kilometres. Work is expected to take around 26 months.
The overall GK3 project will increase SONATRACH’s gas transport capacity to 9 billion cubic metres per year, allowing it to feed the GALSI export line, which will connect Algeria to mainland Italy via Sardinia.
The increased capacity will also go towards feeding gas to the new LNG train in Skikda and two power plants.
