Saipem has been awarded a contract to lay a pipeline for transporting LPG (Liquefied Petroleum Gas) from the central Algerian gas field at Hassi R’mel to the oil export area of Arzew, in northwestern Algeria, on the Mediterranean coast. The contract is worth 285 million euro.
Sonatrach awarded a consortium comprising Saipem and Lead Contracting the EPC contract to lay the LZ2 Hassi R’mel – Arzew pipeline. Saipem’s scope of work will encompass the engineering, procurement and construction of a 24-inch, 495-kilometer pipeline to be built over the next 26 months.
This is the third major contract to be awarded to Saipem in Algeria this year. It follows the winning of the contracts for the construction of the offshore Medgaz pipeline and the Hassi Messaud crude oil treatment and stabilisation plant (UBTS), and confirms Saipem’s growth strategy in the country, where 600 Saipem personnel are currently employed, of which over 75% are Algerians.