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Algeria: Gas Production and Delivery

Air Products and Sonatrach Sign 100 Million Dollar Gas Contracts

| Editor: Ahlam Rais

Once in operation, the air separation plants will produce nitrogen, oxygen and argon, which will be supplied to the Algerian and Maghreb markets.
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Once in operation, the air separation plants will produce nitrogen, oxygen and argon, which will be supplied to the Algerian and Maghreb markets. (Source: Deposit Photos)

The deal has been carried out through both the companies’ joint venture firm – Helios. Under the agreement, Sonatrach will recover helium from two existing LNG facilities and supply it to Helios’ existing liquid helium plant. Two new air separation plants will also be constructed via this deal.

Pennsylvania/USA – Air Products, a leading global industrial gas company, and Sonatrach, the largest state-owned oil and gas company in Africa, have recently signed two gas production and delivery agreements. Conducted through both companies’ joint venture (JV), Helios, the deals have a combined value of 100 million dollars.

Through the deal, Sonatrach will recover helium from two existing liquefied natural gas (LNG) facilities (GL1Z and GL3Z), and that helium will be delivered to Helios’ existing liquid helium plant in Arzew. The Helios plant is an important part of Air Products’ total global helium source portfolio, and the new feedstock will increase the amount of liquid helium produced by the JV plant.

The potential for helium production in Algeria is significant thanks to its large, established natural gas industry and LNG operations, states Air Products. Another important component of Air Products’ and Sonatrach’s agreement is that Air Products will design and build, and Helios will own and operate, two new air separation plants in Algeria. One will be located in the Hassi Messaoud District, with the second in Arzew. Once in operation, these plants will produce nitrogen, oxygen and argon, which will be supplied to the Algerian and Maghreb markets through Sonatrach’s subsidiary, Cogiz.

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These latest agreements are part of Sonatrach’s 2030 Vision for growth, which includes a multi-billion dollar investment programme to expand Algeria’s energy sector and infrastructure.

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