Petrofac, a joint venture with petrochemical specialist China Huanqiu Contracting & Engineering Corporation (HQC), has received notification of a conditional award for Arzew project in Algeria from STEP Polymers SPA (a wholly owned subsidiary of Sonatrach). Boutouba Baatouche, CEO of STEP Polymers, a subsidiary of Sonatrach, and Petrofac General Manager Roberto Bertocco have signed an EPC (Engineering, Procurement, Construction) contract.The plant is built in the industrial area of Arzew west of Algiers.
Arzew project awarded to Petrofac after the official withdrawal of TotalEnergies.
The award of the contract for the construction of a new petrochemical complex in Arzewo to the Sino-British consortium Petrofac-HQC has been confirmed. The contract for the design and construction of two large integrated processing plants includes the delivery of a new propane dehydrogenation plant and a new polypropylene production plant, along with associated utilities and on-site infrastructure.Construction of Algeria’s first petrochemical plant, estimated to cost US$1.5 billion, has been delayed since 2018. This is expected to allow the country to produce 550,000 tons of polypropylene annually.
While the previous company pulled out due to “rising project costs”, the joint venture Petrofac-HQC promised to bring the 88 hectare complex in Arzew into operation over a period of 42 months.
“This project is of great importance for the development of natural resources,” said Energy and Mines Minister Mohamed Arkab to the Algerian news agency APS. “We are proud to be able to support our customer in the implementation of this strategic project. Algeria is a key market for Petrofac and we are committed to supporting the long-term supply of critical infrastructure as the country plays an increasingly important role as a major energy producer and major petrochemical projects.” said Tareq Kawash, CEO of Petrofac Group.
Read more: Algeria signs contracts for implementation of Oil & Gas projects
The construction phase of the complex will create 6,000 direct jobs. The operational phase planned for 2027 guarantees 450 jobs and 2,000 indirect jobs. Petrofac has been active in Algeria since 1997, when it opened its first office in Algiers.
