(Ecofin Agency) - In Algeria, Sonatrach’s subsidiary has granted two Chinese firms a $40 million contract to supply a liquefied petroleum gas (LPG) carrier and an option to provide a second vessel.

Under the contract, Jiangnan Shipyard and China Shipbuilding Trading Company Ltd are to provide Sonatrach's Hyproc Shipping Company, a carrier with a capacity of between 11,000 and 13,000 cubic metres.

Algeria, a member of the Organization of Petroleum Exporting countries (OPEC), is increasing its transport capacity to meet rising European Union gas demand as it seeks to diversify its sales following years of stagnating oil production.

The North African country already has eight liquefied natural gas (LNG) vessels and six LPG carriers, as well as two vessels to transport bitumen, Reuters reports.

Algeria has, previously, invited foreign companies to help develop its oil and gas fields as Sonatrach has been trying to increase output following a corruption probe at the company as well as a deadly attack by militants on the In Amenas gas field in 2013.

Anita Fatunji