Algeria’s state energy company Sonatrach has launched a pre-qualification bidding round to choose firms that will build six compressor stations at an estimated total cost of US$1 billion.
The pre-qualification program is part of a multi-billion-dollar expansion of pipelines, compression, and pumping stations to be built in the next four years to help the North African OPEC state pump more gas from new fields in the south.
Algeria is the leading natural gas producer in Africa, the second-largest natural gas supplier to Europe, and is one of the top three oil producers in Africa. Algeria is estimated to hold the third-largest amount of shale gas resources in the world. However, gross natural gas and crude oil production have gradually declined over the past decade, mainly because new production and infrastructure projects have repeatedly been delayed.
Algeria’s national oil and natural gas company, Sonatrach, dominates the country’s hydrocarbon sector, owning roughly 80% of all hydrocarbon production. The company operates in exploration, production, pipeline transportation, and marketing of hydrocarbons and by products.