Algerian state-run energy company Sonatrach awarded Japanese engineering group JGC’s subsidiary, JGC Algeria, S.p.A.,  a contract worth roughly $1.05bc ontract for natural gas production equipment, Nikkei Assian Review reported.

The deal pertains to the “CREATION OF INLET BOOSTING SEPARATION AND COMPRESSION FACILITIES OF HASSI R’MEL” by Sonatrach to feed the gas processing plant located in the Algerian Hassi R’Mel gas field, according to a press release on the JGC’s website. The project consists of work to improve the capacity of the facilities at Hassi R’Mel that Sonatrach is operating in the region for the purpose of maintaining a production plateau. It is noted that Hassi R’Mel contains more than half of Algeria’s gas reserves and produces 190mcm/d. Some of the field’s output is exported to Europe via pipeline.

In the project, JGC will be responsible for Engineering, Procurement and Construction together with test operation and performance testing of the complete booster unit set, which is scheduled to be completed in 38 months.

Over the course of almost 50 years since JGC was awarded  the contract for the Arzew Refinery Construction Project in 1969, the company has executed a great many projects in Algeria for Sonatrach and Oil majors. In particular, since the 1970’s, these have included numerous projects in the Hassi R’Mel, the largest gas production area in Algeria.