Algerian LNG terminal closes after accident

A technical incident occurred on June 11 at Algeria's Skikda LNG complex that led to its shut-down, the operator Sonatrach said June 19. The 7.7mn metric tons/yr plant has four equally-sized trains while the other, still-operational terminal at Arzew, is about three times larger.

The technical incident was caused by the sudden failure of a gas turbine control mechanism. There was no other damage owing to the deployment of automatic safety devices, it said.

As a safety measure, and working with the equipment manufacturer, Sonatrach said it has decided to carry out a thorough inspection in order to carry out the necessary repairs.

The accident coincides with record European spot gas prices for June as the continent scrambles for gas to inject into storage while Asian demand is also high. Most of Skikda's output is likely to be sold on oil indexation contracts and those will also be relatively high.