Sonatrach Signs GR7 Pipe Contracts

Algerian state Sonatrach signed two contracts July 31 for the construction of the 344-km, GR7 gas pipeline from el Menia in the Ghardaia district northwards to Hassi R’Mel costing $348mn (dinar 38.9bn) that will enable gas to be transported from new gas fields at Hassi Mouina, Hassi Ba Hamou and Ahnet, reported state news agency APS. GR7 will have a capacity of 21.2bn m³/yr and feed into the national gas despatching centre in Hassi R'Mel, 450 km south of Algiers.

The two contracts were signed by Sonatrach’s pipelines operator TRC with Algerian state companies. The first worth $156mn was Alfapipe, part of Imetal, for the supply of 48-inch diameter pipes to be delivered within 12 months. The second worth $192mn with Cosider and Sonatrach subsidiary ENAC covers engineering, procurement and construction, which is to be completed within 30 months. The APS report can be seen here.

Hassi Mouina, Hassi Ba Hamou and Ahnet are expected to produce at plateau 1.4bn m³/yr, 1.8bn m³/yr and 4bn m³/yr respectively according to a report by Ali Aissaoui published in May by the Oxford Institute for Energy Studies which indicated that the start-up date was not yet certain. Algerian newspaper El Moudjahid reported August 1 that the first two fields would start in April 2019, followed by Ahnet in July 2019. However upstream timelines in Algeria have slipped before.

El Moudjahid reported Algerian energy minister Noureddine Bouterfa saying he was "happy that GR7 would be a 100% Algerian-built project."

Energy minister Noureddine Bouterfa (Photo credit: www.portail.cder.dz )

France's Total acquired a 49% stake in Ahnet in 2009 but pulled out of the planned $4bn tight gas development in 2014 when production economics began to look uncertain. All three gas field projects are now understood to be Sonatrach-operated.

Mark Smedley