Sonatrach has signed two agreements: an EPC contract for the GR5 gas pipeline (Reggane - Krechba - Hassi R’mel gas pipeline) and a Memorandum of Understanding with South Korean company GS Engineering & Construction on a future joint venture.
The Reggane - Krechba - Hassi R’mel gas pipeline will be built in two phases: a 309-km section from Reggane to Krechba will be realised by Cosider Canalisations and by two Sonatrach subsidiaries GCB and GTP. A 474-km section from Krechba to Hassi R’Mel will be realised by Cosider Canalisations and ENAC (a subsidiary of Sonatrach). Construction works will last 36 months and the pipe will be commissioned in November 2015. It will deliver 6 bcm/year of natural gas from the Touat field operated by GDF SUEZ and Sonatrach (production of 4.5 bcm/year) and from the Timimoun field (Sonatrach-Total-Cepsa, 1.6 bcm/year). The GR5 pipeline transport capacity could be later expanded to 27 bcm/year. Investment is estimated at DA 87.15bn ($1.1bn).