Exploration & Production

Algeria’s Sonatrach maxes out on export flexibility

Sonatrach is expanding its Skikda liquefaction plant to take larger ships and increase its storage capacity, but stagnant production is leaving facilities underused Sonatrach is expanding its Skikda liquefaction plant to take larger ships and increase its storage capacity, but stagnant production is leaving facilities underused.
By Fatima Sadouki 14 February 2019 0 33936
A Sonatrach LNG carrier. (Sonatrach)

The key issue: Sonatrach signed an EPC contract with China Harbour Engineering Co. in late January for the development of a second jetty and associated infrastructure at Algeria’s Skikda LNG plant.

Interfax analysis: The EPC contract signed between Sonatrach and China Harbour Engineering Co. to expand the Skikda liquefaction plant shows Algeria is taking clear steps to optimise its LNG export strategy via increased flexibility. But gas exports – whether as LNG or by pipeline – will remain subject to limited production growth in the coming years...