The Russian company Stroytransgaz and the Algerian state-owned oil and gas company Sonatrac signed in Algeria on Monday a contract for the construction of the Souguer - Hadjret En Nouss gas pipeline at the cost of over US$ 226 million.

The Project is executed on EPC (engineering, procurement, construction) conditions. The scope of works includes 42”, 273 km pipeline-long pipeline in the northwest of the country within 20 months , the start and end terminals, including pressure reducing and metering stations, 12 valve stations and tapping unit. It also includes SCADA, Telecom, Instrumentation and Cathodic Protection systems.

The vice president of Stroytransgaz, Leonod Bokhanovsky, inked the deal from the Russian side.

The objective of the project is to supply natural gas to Hadjret Ennous 1200 MW power station in Typaza province and settlements of the centre regions of the country.

The international tender for construction of the gas pipeline was won by Stroytransgaz in June 2005. Among other Bidders were such well-known international contractors as Cosider, Willbros, Masa. Stroytransgaz won the tender as it offered most profitable and technologically acceptable conditions than its competitors.

The previous project executed by OAO Stroytransgaz in Algeria was construction of the Nothern 34”, 403 km section of the oil pipeline Haud-El-Hamra – Arzew worth US$80 million. The EPC contract was successfully completed in 2003 and met with appreciation of the Employer – SONATRACH Company. At present the pipeline is in the warrant operation.

Construction of the gas pipeline Sougueur – Hadjret Ennous is one of the largest national projects in Algeria at present that will be executed by a Russian contractor.