In a bid to diversify the range of products the country produces from its abundant hydrocarbon reserves, Algeria has awarded contracts to the tune of more than US$4 billion for petrochemical infrastructure projects.
France's Total SA has been awarded a tender to build and operate a steam cracking complex producing 1.4 million tpa of ethane. The project, worth more than US$3 bln, is to be located at Algeria's northwest coast in partnership with state energy firm Sonatrach, will also make polyethylene and ethylene glycol. It will be financed 49% by Sonatrach and 51% by Total and will cater to demand in domestic as well as international markets.
The government has awarded a contract to build a 1 million tpa methanol to the Almet consortium of foreign and local firms, at an estimated investment of US$1 bln. The Almet consortium includes Mitsui of Japan, Qurain of Kuwait, German firm Lurgi as well as companies from Algeria and Trinidad, and will hold a 51% stake in the project. Sonatrach will hold the balance 49% stake.
These two plants are the first of six petrochemical projects Algeria has launched for an estimated overall value of US$12 bln. Algeria is rapidly expanding output of oil and natural gas and wants to invest heavily in petrochemicals to diversify the range of products for export and get more value from its energy supplies.
17-Jul-07 
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