October 07, 2008

Sonatrach signs agreement with Saipem for LPG pipeline

Arabian Business reported that Algerian hydrocarbons company Sonatrach and Italian Saipem Snam Progetti have signed an agreement to construct the world's longest pipeline to transport liquefied petroleum gas of more than 500 kilometer in Algeria.

Mr Nerio Capanna head of Italian pipeline transport and Mr Mohamed Meziane CEO of Sonatrach has signed the agreement in presence of Mr Chakib Khelil mines minister of Algeria.

The LZ2 pipeline, will connect the gas terminal at Hassi R'mel to the Arzew petrochemical complex, and is estimated to cost around USD 500 million.