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Algeria’s National Company for Marketing and Distribution of Petroleum Products (Naftal) has enlisted pipeline unit of national oil company (NOC), Sonatrach TRC, to construct a 424 km Liquefied Petroleum Gas (LPG) pipeline covering the Mediterranean coast. With an estimated cost of $364 million, the two parties signed the engineering, procurement, and construction (EPC) contract on March 23, 2022, at Sonatrach’s headquarters.

The 12-inch sized pipeline is expected to deliver 1.2 million tons of LPG annually for the north African country. The bulk infrastructure project is estimated to take 48 months until completion and will run between the port city of Arzew and the capital city of Algiers. The pipeline will cross seven major Algerian administrative divisions in total, namely, Ain-Defla, Chlef, Blida and Algiers in the north, as well as Mascara, Oran and Relizane in the northwestern parts of Algeria.

Naftal chairperson Mourad Menouar welcomed the deal, acknowledging that the deal falls within the NOC’s overall development strategy. Menouar further noted that the pipeline’s construction will significantly improve efficiencies around LPG distribution, particularly in the western and central parts of Algeria.

Sonatrach’s chairperson, Toufik Hakkar expressed his support and noted that that the project is aligned to the company’s overall group strategy. Hakkar was clear that “LPG is becoming an important element in the country’s energy portfolio,” given the high costs associated with transporting LPG by boat or by road and that the energy security of Algeria is crucial for all involved. 

Also present at the signing was Sonatrach TRC vice president, Amine Melaika who flagged the pipeline unit’s full commitment to the project, emphasizing the benefits of the pipeline for the entire population of Algeria.