Total, Sonatrach Collaborate in Petrochemical Project in Arzew

French oil company Total and Algerian state oil company Sonatrach have signed an agreement to launch the engineering studies for a petrochemical project in Arzew, western Algeria, Total said in a press release Friday.<br />The project will include a propane dehydrogenation (PDH) unit and a polypropylene production unit with an output capacity of...

French oil company Total and Algerian state oil company Sonatrach have signed an agreement to launch the engineering studies for a petrochemical project in Arzew, western Algeria, Total said in a press release Friday.

The project will include a propane dehydrogenation (PDH) unit and a polypropylene production unit with an output capacity of 550,000 mt/year, the company said.

"This project in Algeria illustrates our petrochemical growth strategy which consists of expanding our activities from competitively advantaged feedstock, especially derived from gas, to take advantage of the growing global plastics demand," Chairman and CEO Patrick Pouyanne said.

The companies plan to invest around $1.4 billion for the project (Sonatrach 51%, Total 49%).

"This polypropylene project complements our other projects announced recently in the United States, in the Middle-East and in Asia, which are primarily focused on polyethylene," Pouyanne said.

Earlier in the year, Total signed an agreement with Saudi Aramco to develop a large petrochemicals complex in Saudi Arabia. The agreement was signed April 10.

The new $5 billion complex will be integrated into the 400,000 b/d Satorp refinery -- a joint venture by the two oil companies.

Also, Total, Nova Chemicals and Borealis signed an agreement in February to form a joint venture to build a steam cracker and affiliated polyethylene plant in Texas.

Source: www.platts.com