Sonatrach awards LNG carrier contract

Algeria’s state-owned oil and gas company Sonatrach has awarded a $160 million contract to Japanese shipyards Itochu Corp. and Mitsui & Co to build a 75,000 cubic metre capacity Medmax LNG carrier, with an option for a second vessel.

To finance the deal, Sonatrach signed an agreement with French bank Caylon for 75% of the carrier’s cost. Sonatrach recently acquired two other LNG carriers, Berge-Arzewa and Lalla Fatma N’Soumer, and plans to increase its gas export capacity to 85 billion cu m in 2010 and to 100 billion cu m by 2015.