Name and Location
Arzew liquefied natural gas (LNG) project, Algeria.

Project Description
The project involves the construction of a single LNG liquefaction train (GL3-Z) and associated infrastructure in Arzew, adjacent to the existing refinery, about 400 km west of Algiers. The single train processing plant will have a liquefaction capacity of 4,7-million tons a year. The scope of work includes gas compression sweetening and dehydration, the recovery of natural gas liquids, fractionation to produce ethane, propane and butane, a natural gas liquefaction unit, LNG storage and loading.

Gas feedstock for the new train will be supplied from the Gassi Touil and Rhourde Enouss gasfields. Alongside the refinery are two gas liquefaction plants - the GL1-Z and GL2-Z - which have undergone refurbishment of equipment and debottlenecking.

Algeria has proven natural gas reserves of 4,5-trillion cubic metres, which amounts to about 2,6% of the world's total, and is the world's fourth-largest gas producer, supplying 25% of the European Union's natural gas imports.

Value
The project is valued at over €2,8-billion.

Duration
The project started in 2008 and is scheduled for completion in 2013.

Client
State-owned oil company, Société Nationale pour le Transport la Recherche et la Commercialisation des Hydrocarbures (Sonatrach).

Key Contracts and Suppliers
A joint venture comprising Saipem/Snamprogetti and Japan's Chiyoda Corporation (engineering, procurement and construction) and Cape (insulation works - GL3-Z).

Latest Developments
UK-based Cape has been awarded a contract valued at over €27-million for the provision of the total insulation works for the GL3-Z project. The work will begin in the first quarter of 2011, with completion scheduled for the first half of 2012.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Cape, tel +44 20 3178 5498.
Chiyoda Corporation , tel +81 45 521 1231 or fax +81 45 503 0200.
Saipem Algeria, tel + 213 29 73 8105/8308 or fax +213 29 73 8106.
Snamprogetti Algeria, tel +213 21 60 5713 or fax +213 21 60 8724.
Sonatrach, tel + 213 21 54 8011/+213 21 54 7000, fax +213 21 54 7700 or email sonatrach@sonatrach.dz.