The petrochemical project to be built at the Arzew Industrial Zone, located west of Algiers, by STEP Polymers, a fully-owned subsidiary of Algerian national oil company Sonatrach, is designed to have an annual production capacity of 550,000 tons of polypropylene
The Algerian petrochemical project will produce 550,000 tons of polypropylene per year. (Credit: Petrofac Limited)
Petrofac and China Huanqiu Contracting & Engineering (HQC) have been selected for a $1.5bn worth engineering, procurement, and construction (EPC) contract for a petrochemical project in Algeria by STEP Polymers.
In this regard, Petrofac announced the receipt of notification of the conditional award from STEP Polymers, which is a fully-owned subsidiary of Algerian national oil company Sonatrach.
Petrofac, which is leading the joint venture, will have a share of $1bn. The energy services company’s partner in the JV is a fully-owned construction subsidiary of China National Petroleum Corporation (CNPC).
The consortium of Petrofac and China Huanqiu Contracting & Engineering emerged as the lowest bidder for the EPC contract for which a selection process was launched in April 2021.
According to Sonatrach, the petrochemical EPC project has a completion period of 42 months.
Petrofac group chief executive Tareq Kawash said: “We are proud to be supporting our customer to deliver this strategic project. Algeria is a core market for Petrofac and we are committed to supporting the long-term delivery of critical infrastructure as the country plays an increasingly important role as a major energy producer and moves into major petrochemical projects.”
The new petrochemical plant will be built at the Arzew Industrial Zone, located west of Algiers.
Petrofac revealed that the scope of the contract covers the design and build of two major integrated processing units. The JV will be responsible for the delivery of a new propane dehydrogenation facility and polypropylene production unit along with associated utilities and infrastructure for the project site.
The petrochemical project in Algeria is designed to have an annual production capacity of 550,000 tons of polypropylene.
Petrofac engineering and Construction division chief operating officer said Elie Lahoud said: “The award of this major project builds on Petrofac’s 25-year track record of successfully supporting Algeria’s energy industry.
“As our client responds to the world’s increasing demand for petrochemical products, we are looking forward to developing our breadth of experience in-country, through the safe and timely delivery of this project.”