Sonatrach has awarded Saipem-Snamprogetti, in a joint venture with Chiyoda, the lump sum turnkey contract for the new Arzew liquefied natural gas (LNG) train.

The single-train gas liquefaction plant, with a capacity of 4.7 million tonnes of LNG per annum, will be constructed near Arzew, about 400km west of the Algerian capital Algiers.

This is reportedly the first time that Saipem has been named as the main contractor of an LNG plant, claimed to be based on its credentials as an integrated player capable of managing large and complex turnkey projects in the LNG sector. The works for the new Arzew LNG train are expected to be completed by the end of 2012.