Home Oil and Gas LTHE secured $990m contract for Sonatrach’s South West Gas project in Algeria

LTHE secured $990m contract for Sonatrach’s South West Gas project in Algeria

L&T Hydrocarbon Engineering (LTHE) has bagged a contract worth more than $990m from Sonatrach pertaining to the South West Gas Fields Development Project in Algeria. The contract won by LTHE is for the engineering, procurement, construction and commissioning (EPCC) of three Central Processing (CPF) facilities for the South West Gas project, located in the Adrar province.

The three facilities will be built close to each other at Hassi Ba Hamou and Reg Mouaded, Hassi Tidjerane and Tinerkouk fields, said the Larsen & Toubro subsidiary. The CPF at the Hassi Ba Hamou and Reg Mouaded field will have a capacity of 6 million metric standard cubic meters per day (MMSCMD) while the CPFs at the Hassi Tidjerane and Tinerkouk fields will each have capacities of 4 MMSCMD.

LTHE revealed that the process facilities include separation, compression system, mercury removal, hydrocarbon dew point control, gas dehydration along with associated offsite and utilities. The company said that the project will maximize modularization, thereby cutting down on site construction works while achieving standardization across the fields. All modules of the facilities for the South West Gas project are planned to be fabricated in-house at the manufacturing facilities of Larsen & Toubro. LTHE, in a statement, said: “The contract has been awarded through international competitive bidding on a Lump Sum Turn Key (LSTK) basis.

Bagging this order from Sonatrach reflects confidence of Oil and Gas majors in LTHE’s capabilities to execute mega projects for the Oil and Gas processing industry globally. The India-based LTHE offers ‘design to build’ engineering and construction solutions for the entire hydrocarbon spectrum. Last month, the company won EPCC contracts from Indian Oil (IOCL) for establishing a Mono Ethylene Glycol (MEG) Plant and an Ethylene Recovery Unit (ERU) at the IOCL Paradip Refinery in the Indian state Odisha. Also in January, the company in consortium with Subsea 7 won a contract from Saudi Aramco related to the Zuluf and Berri fields located offshore Saudi Arabia. Under the contract, the consortium will undertake the engineering, procurement, construction and installation (EPCI) of three oil production deck manifolds and subsea pipelines in the two offshore fields.

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