Algerian, French, Malaysian gas companies sign $ 2 billion-deal

Algerian fuel manufacturing company, SONATRAC, Gas de France, and Malaysian Petronas signed on Saturday a two billion dollar worth deal to improve the 17,000 square meter Ahnat gas fields 400 kilometers from Ain Saleh in southern Algeria.

Kuwait news agency (KUNA) reports the deal provides for cooperation in research and studies to best utilize and improve the 140 billion cubic meters gas reserves in the fields.

The project involves completion of gas mining facilities and gas refineries as well as a 300 kilometer pipeline connecting the field with the Ain Saleh gas pipeline that ends in western Europe.

SONATRAC will bring 35% of the total investment while Gas de France will invest 25% and Petronas another 45 percent.

The French and Malaysian firms will pay $ 45 million for concession right to invest in the field.