Cape wins £22.5 mln services contract for Algeria’s Sonatrach

Cape PLC (LON:CIU), international provider of essential, non-mechanical industrial services principally to the energy and mineral resources sectors, said it has been awarded a contract valued in excess of €27 million (£22.5 million).

The contract, awarded by Snamprogetti Chiyoda s.a.s. di Saipem S.p.A., is for the provision of the total insulation works for the Sonatrach GL3-Z liquefied natural gas project in Arzew, Algeria. The work will commence in the first quarter of 2011 with completion scheduled for the first half of 2012.

This award marks the first major LNG project contract win for Cape in North Africa since the Damietta LNG project in Egypt in 2002. Cape was first involved in the construction of Arzew GL1-Z in Arzew in 1977.  Cape's most recent contract in Algeria was at the In Salah gas project in 2003.

The GL3-Z single train LNG processing facility will have a liquefaction capacity of 4.7 million tonnes per annum and is scheduled for completion in 2013.

Chief executive Martin May said: “This is another significant award for Cape, in the strategically important LNG sector in which we currently work around the world in places such as Australia, Qatar, Sakhalin and Chile.  We are delighted to again be working in Algeria which is already the fourth largest LNG exporting country in the world.  With its continuing growth plans, Algeria represents a key market for Cape, and we look forward to building on this relationship with Snamprogetti Chiyoda.”

http://www.proactiveinvestors.co.uk/companies/news/19864/cape-wins-225-mln-services-contract-for-algerias-sonatrach-19864.html