Algeria's Sonatrach signs int'l agreement for petrochemical complex
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As per Sonatrach, the EPC contract involves the construction of a petrochemical complex spread over 88 hectares intended for the production of 550,000 tons/year of polypropylene.
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The logo of the Algerian Sonatrach group is pictured in Algiers in February 2018 (AP)
STEP Polymers SPA, a 100% subsidiary of the Sonatrach group, and the JV Petrofac-HQC signed this Sunday in Algiers a contract for the construction of a petrochemical complex in Arzew (Oran).
In a press release published on its website, Sonatrach specified that the signing ceremony took place at the headquarters of Sonatrach's general management, in the presence of Algeria's Energy Minister, Mohamed Arkab and the CEO of Sonatrach Toufik Hakkar.
"This Engineering, Procurement & Construction contract involves the construction, at the level of the industrial zone of Arzew, of a petrochemical complex spread over 88 hectares intended for the production of 550,000 tons/year of polypropylene, for a construction period of 42 months," said Sonatrach.
"The expected polypropylene production from this future complex will be intended to cover the needs of the domestic market and export the surplus production to the European, Asian, and African markets," it added.
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It is worth noting, according to Sonatrach, that this contract was awarded on May 14, following a restricted international consultation, in accordance with the procurement procedure in force within STEP Polymers Spa.
"The implementation of this important project will create nearly 6,000 direct jobs during the construction phase, 450 during the operation phase, and 2,000 indirect jobs," the oil and gas group said.
"The project will adopt the norms and standards applied nationally and internationally in the field of environmental protection, including the implementation of a large program of tree planting," the same source added.
Sonatrach also detailed that the second signature pertains to a financing agreement between STEP Polymers SPA and the Central Bank of Algeria (BNA) as a front-runner.
"This agreement will cover 70% of the financing of the project of building the petrochemical complex of Arzew polypropylene, the remaining 30% will be financed by equities," the source further confirmed.
