Algeria-based oil company Sonatrach has awarded Saipem the EPC contract for gas pipeline GK3 lot 3, covering the engineering, procurement and construction of a gas transportation system. Lot 3 encompasses a 48in gas pipeline system from Mechtatine to Tamlouka in the NE of Algeria, then connecting the latter to Skikda and El-Kala located on the NE coast of the country, for a total length of 350km. The work will be completed in a 26 month period. The overall GK3 project will allow Sonatrach to expand its gas transport capacity to 9 billion cum per year in order to provide the gas necessary to feed the future GALSI export gas line, which will connect Algeria to mainland Italy via Sardinia, as well as the new LNG train in Skikda and two power plants. Saipem, 43% owned by Eni, is organized in three Business Units: Offshore, Onshore and Drilling, with a strong bias towards oil & gas related activities in remote areas and deepwater.