Algeria: Total and Sonatrach will launch a petrochemical project worthing $1.4 billion 1
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Nour Ben Omar
Monday 28 May 2018 Last update on Monday, May 28, 2018 At 1:40 PM

As stated by Total in a press release, the French company has recently made a deal with the Algerian state-owned corporation, Sonatrach, within the framework of their comprehensive partnership, announced in 2017. The agreement foresees the launch of engineering studies for a petrochemical project this summer, in Arzew, western Algeria. It will represent an investment of around $1.4 billion by both partners (Sonatrach 51%, Total 49%).

This project, subjected to the agreement of the Algerian regulatory authorities, comprises a propane dehydrogenation (PDH) unit and a polypropylene production unit with an output capacity of 550,000 tons per year.

In fact, it appears that plastic demand is soaring considerably. Therefore, this agreement would valorize propane produced in large quantities locally, into polypropylene, a plastic for which demand is growing significantly.

What about the target? It will supply in priority the local and Mediterranean demand, and Total will take care of the commercialization of the rest of the production in Europe.

“This project in Algeria illustrates our petrochemical growth strategy which consists of expanding our activities from a competitively advantaged feedstock, especially derived from gas, to take advantage of the growing global plastics demand” explained Patrick Pouyanné, Chairman and Chief Executive Officer of Total.

According to Total, this project will also enhance the historic partnership between both parties. In fact, Total’s exploration and production activities in Algeria date back to 1952.

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