Indian engineering giant Larsen & Toubro (L&T) has won a large contract from Algeria’s Sonatrach for gas processing facilities required for the country’s south-western onshore gas fields development project, with the contract valued at about $1 billion.

While L&T did not disclose the value of the contract, it described the project in a statement as "mega", which denotes a value upwards of 7000 crores ($990 million).

L&T said the engineering, procurement and construction contract aims to set up three central processing facilities at the Hassi Ba Hamou and Reg Mouaded field (6 million cubic metres per day capacity), the Hassi Tidjerane field (4 million cmd) and the Tinerkouk field (4 million cmd).

Sonatrach’s chief executive Abdelmoumen Ould Kaddour also confirmed the development and told media that the company has signed a $1 billion contract with L&T to build gas plants for producing 11 million cubic metres of gas per day.

“The project shows that we still have gas and we can raise output in the coming few years,” he told reporters.

The three facilities are located close to each other in the Adrar province of Algeria, the L&T statement added.

Process facilities include separation, compression system, mercury removal, gas dehydration, hydrocarbon dew point control and associated offsite & utilities, L&T said.

The company said that all modules will be fabricated in house at L&T’s manufacturing facilities.

The contract has been awarded through international competitive bidding on a lump sum turn key basis, it added.

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Sonatrach awards L&T $1bn Algeria work