China’s state-owned oil and gas company, Sinopec, has signed a deal with Algeria’s national oil company, Sonatrach, for the construction of a $179 million Liquefied Natural Gas (LNG) storage tank in Algeria.
Signed last week, the deal will see Sinopec building an LNG tank with a capacity of 150 000. The storage tank will be constructed at the Skikda gas export terminal in the eastern region of Algeria, with construction expected to be completed in 40 months.
In addition to the storage tank construction, the deal comprises both the supply and installation of equipment for the new LNG loading system. The equipment is intended for the connection of a ferry to the system, and forms part of a new pier for the oil port of Skikda’s overall extension. According to Sonatrach, the new pier will allow for the better movement of LNG export vessels.
Once complete, the project will boost Algeria’s export capacity and improve LNG production in the country.