Algeria: Engineering Total Enters into Agreement with Sonatrach for 1.4 Billion Dollar Petrochemical Project
The project will comprise of a propane dehydrogenation unit along with a polypropylene production unit for which front-end engineering and design will soon be carried out.
Paris/France – As part of the comprehensive partnership announced in 2017, Total has recently signed an agreement with Sonatrach to launch the engineering studies for a petrochemical project in Arzew, western Algeria.
The project includes a propane dehydrogenation (PDH) unit and a polypropylene production unit with an output capacity of 550,000 tonnes per year. The project represents an investment of around 1.4 billion dollars by the two partners (Sonatrach 51 %, Total 49 %), who are planning to start the front-end engineering and design (Feed) this summer, subject to approval by the relevant Algerian regulatory authorities.
The facility will valorise propane, produced in large quantities locally, by transforming it into polypropylene, a plastic for which demand is growing strongly. It will supply in priority the local and Mediterranean demand and Total will be responsible for the commercialisation of the rest of the production in Europe, where it will leverage its market expertise to the benefit of both partners.
This project in Algeria illustrates Total’s petrochemical growth strategy which consists of expanding its activities from competitively advantaged feedstock, especially derived from gas, to take advantage of the growing global plastics demand. This polypropylene project complements its other projects announced recently in the United States, in the Middle-East and in Asia, which are primarily focused on polyethylene.