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UPDATE 1-Algeria expects 6 bcm LNG plant to start up this year

Mon, 24th Feb 2014 15:56

ALGIERS, Feb 24 (Reuters) - Algeria will start up a newplant to liquefy natural gas (LNG) this year, with a annualcapacity of 6 billion cubic metres, Energy and Mines MinisterYoucef Yousfi told a state news agency on Monday.

The OPEC member and gas producer, which aims to bolsterproduction in its lagging energy sector, earlier this yearstarted production from a new LNG unit at the eastern town ofSkikda.

"A new unit is expected to come online this year, with thesame capacity," Yousfi told state news agency APS.

He appeared to be referring to a unit that has been underconstruction in the western town of Arzew.

Yousfi also said the In Amenas gas plant, hit by Islamistmilitants attack early last year, would resume full productionin months.

Last month, the minister said he expected the plant to fullyrestart "within weeks".

The plant is currently producing 20 million cubic metres perday out of a total capacity of 30 million cubic metres.

BP, Norway's Statoil < STL.OL> and state-ownedSonatrach jointly operate the facility, in which 40 workers diedduring the attack.

BP and Statoil have withdrawn their staff since the assault,demanding better security conditions, though Algerian officialssay they have met all demands for improved protection.

"Specific measures have been taken to prevent such a tragedyfrom happening again in the future and provide partners withmaximum assurance regarding the safety of their personnel,"Yousfi said on Monday.

Separately, the APS reported that Algeria on Monday startedproduction from a new gas processing plant with a total capacityof 3.6 billion cubic metres per year.

The Gassi Touil plant will be supplied from 42 wells out of52 planned, it said, citing unnamed official at the Sonatrach ata ceremony at the plant in the southern province of Ourgla.

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