Kuwait's Qurain Petrochemicals said it expected costs for an Algerian methanol plant contract it has won as part of a consortium to amount to $700 million.

Algeria officials had put the costs of the plant, which Qurain will build with a consortium of local and international firms, at an estimated $1 billion.

Qurain said in a statement the plant would start producing 1 million tonnes methanol per year from the end of 2010.

Aside from Qurain, the consortium includes Mitsui of Japan, German firm Lurgi as well as companies from Algeria and Trinidad. The consorium will take 51 per cent of the project, with local state energy firm Sonatrach taking 49 per cent.

Qurain said its share in the deal amounted to $150 million.Reuters