Petrofac has become the firm favourite to win the contract for the construction of a £1.95 billion liquefied natural gas (LNG) plant in Algeria.

With the north African country keen to increase its export capacity, its minister for energy, Khelil Chakib, alongside senior officials from the state-run Sonatrach, met to accept invitations to tender from a number of international firms.

Though a final decision has yet to be confirmed, it has been announced that Petrofac did submit the lowest bid for the proposed construction of the plant, which will be located in the industrial area of Arzew and is expected to be capable of producing in excess of 4.3 million tonnes of LNG a year.

This will enable Algeria to significantly increase its hydrocarbon export capacities, boosting the national economy.

News of the developments prompted shares in Petrofac to rise by three per cent in value, though the company has so far only released a brief statement confirming that it has set its venture partners a deadline of ten days to provide guarantees that they wish to proceed with the work.