Repsol YPF and Gas Natural SDG awarded integrated liquefied natural gas project in Algeria

Source: www.gulfoilandgas.com 11/17/2004, Location: Africa

Repsol YPF and Gas Natural win first integrated LNG project in Algeria to be awarded to onsortium with foreign companies.

The two companies will invest EUR1,628 million for the joint production, exploration, liquefaction and marketing of an oil and gas reserve owned by the Algerian state company Sonatrach, in the Gassi Touil Rhourde Nouse-Hamra region, in the eastern part of the country.

The new project contributes significant internal and external synergies, thanks to the presence of both companies in Algeria and their relevant positioning in gas markets in Spain and the United States.

Repsol YPF and Gas Natural SDG were awarded today an integrated project for the joint exploration, production, and marketing of liquefied natural gas (LNG) in the Gassi Touil zone, in east Algeria, in a tender process promoted by the Algerian public company Sonatrach.

The consortium, in which Repsol YPF holds a 60% stake and Gas Natural SDG 40%, will make a joint investment of EUR1,628 million ($2.1 billion) in the awarded 30-year project.

The two companies, which began to work on this project in 2003, will produce the gas reserves already discovered in Gassi Touil, Rhourde Nouss, and Hamra, and will undertake exploration work in the awarded zone to discover additional oil and gas reserves for their subsequent development and production.

The project also contemplates the construction of a liquefied natural gas plant in Arzew, for jointly marketing the gas from the awarded production area. The liquefaction plant will have a 5.2 bcm/year of LNG capacity , equivalent to 20% of Spain´s domestic consumption, and could be enlarged in the future with a second train to optimise the project. This liquefaction plant could start commercial operations in 2009.

SYNERGIES WITH OTHER ASSETS

The Gassi Touil-Rhourde Nouss zone is adjacent to the Berkine basin, where the Repsol YPF (operator) and Gas Natural SDG consortium won a tender last July for oil and gas exploration in an area covering 4,831 Km2 (Gassi Chergui Ouest).

Winning this integrated gas exploration and production project provides the Gas Natural Group its first direct access to natural gas reserves to cover the market’s growing gas demand.

Thanks to this award, Repsol YPF strengthens its leadership in Algeria, which, along with the other concessions in Libya, enhances the company’s privileged position in the Maghreb.

Repsol YPF and Gas Natural SDG are among the leading liquefied natural gas suppliers in the world, with a significant presence in Spain and the United States, and the number one position in the Atlantic Basin. Algeria plays an important role in the providing gas to Spain, with that country supplying over 50% of the Spanish market´s needs.

This transaction also contributes significant internal synergies with both companies’ other exploration assets in Algeria, such as the previously mentioned Gassi Chergui Ouest block, adjacent to Gassi Touil, and Repsol YPF’s assets in Reganne (where gas was already discovered) and M’Sari.

The Gassi Touil project is part of the Gas Natural SDG and Repsol YPF strategy to jointly study and develop, on a project-by-project basis, those integrated gas projects where both companies’ combined efforts contribute added value.




India >>  6/22/2022 - In a first-of-its kind endeavour in the country, GAIL (India) Limited plans to enter into distributed Liquefied Natural Gas (LNG) production with the ...
Qatar >>  6/21/2022 - ExxonMobil and QatarEnergy today disclosed that they had signed a contract to advance the North Field East project in Qatar, which will increase the c...

Russia >>  6/17/2022 - A number of documents for a wider use of natural gas as a vehicle fuel in Russian regions were signed at the St. Petersburg International Economic F...
United States >>  6/14/2022 - Freeport LNG Development, L.P. ("Freeport LNG") is providing the following update on the June 8 incident at its Quintana Island liquefaction facility:...

China >>  6/10/2022 - Wison Offshore & Marine (WOM) and ABB Engineering (Shanghai) LTD. (ABB) recently signed a Memorandum of Understanding (MOU) to collaborate on the deve...
Norway >>  6/2/2022 - After extensive repairs and improvement work, Hammerfest LNG is back in production after the fire in September 2020. The first liquified natural gas (...

Related Categories: Deodorization system  Gas dehydration  Gas sweetening  Gas Treating  General  GTL Processing  LNG Processing  LPG Domestic use  LPG Odorless  Packing  Phase Separation  Scrubbers 

Related Articles: Gas dehydration  Gas sweetening  Gas Treating  General  GTL Processing  LNG Processing  LPG Domestic use  LPG Odorless  Packing  Phase Separation  Scrubbers 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.