Yokohama, Japan - JGC Corporation, through a newly-established joint venture company, has been awarded Operation & Maintenance (O&M) services contracts for gas-fired power plants in Algeria. The new company is the first investment activity related to the Algerian power sector by any Japanese enterprise.

JGC, along with the Algerian state-owned gas and electricity company "Sonelgaz", and an Omani power O&M service company, "SOGEX Oman", have jointly established a local company, called "Algerian O&M Company", for the purpose of providing O&M services for power plants in Algeria. The company has been awarded 1) a 20-year O&M contract by Shariket Kahraba Koudiet Eddraouch, which owns a 1200 MW gas-fired power plant in the province of El Tarf scheduled to enter into commercial operation in 2012, and 2) a 20-year O&M contract by Shariket Kahraba Terga, which owns a 1200 MW gas-fired power plant in the province of Ain Temouchent also scheduled to enter into commercial operation in 2012.

In recent years, Algeria has been experiencing a rapid growth in power demand, and a number of power plants are under construction, as well as under consideration. JGC is convinced that many additional contracts will be awarded to Algerian O&M Company in the future.

In Algeria, JGC has successfully executed numerous oil refining and gas processing EPC plant projects over a period of more than 40 years. Moreover, JGC has continuously provided Technical Assistance Services including daily operation and maintenance support to a number of these plants. Leveraging such EPC experience and the operational know-how gained, JGC intends to implement the power plant O&M services with support from its local subsidiary, "JGC Algeria".