The Skikda Linear Alkyl Benzene (LAB) petrochemical project advances slowly, despite the $ 1.1 billion Engineering, Procurement, Construction, and Commissioning (EPCC) award to Tecnimont. Initially, Sonatrach selected Tecnimont to design, procure, and construct the LAB plant with associated utilities and offsite connections. However, authorities and the contractor have not publicly reported any construction milestones since the award in March 2024. Therefore, the project remains in a pre-construction planning stage.
Project Overview and Scope
Sonatrach designed the Skikda LAB project to boost downstream chemical capacity. The plant will produce 100,000 t/year of LAB, which reduces Algeria’s dependency on imports. In addition, the project includes utilities, offsites, and connections to existing refinery infrastructure. Consequently, the development strengthens industrial diversification and supports Algeria’s export strategy.
Tecnimont, under MAIRE Group, manages engineering, procurement, construction, and commissioning. The company coordinates technical teams, suppliers, and subcontractors to deliver modules efficiently. Moreover, project planners schedule construction to complete within 44 months of contract effectiveness, targeting 2027–2028.
According to the contract that was awarded by Sonatrach, Tecnimont has been tasked with the responsibility of constructing a linear alkyl benzene (LAB) plant in Skikda industrial zone that is situated just 350km east of the city of Algiers. LAB is relatively cost-effective and a biodegrable intermediate that is usually a raw material in the production of home detergents, cleaners, and even surfactants.
This massive petrochemical plant is expected to be completed in the year 2028. The EPCC contract entails a plant for raw materials for the industries that produce detergents and surfactants, allowing the manufacture of added-value chemicals from sources that are natural.
Current Status and Market Context
The project remains on hold, as public sources report no groundbreaking, civil work, or mechanical progress. Meanwhile, Sonatrach’s 2024 annual report reiterates the award but provides no construction updates. Similarly, industry news in 2025–2026 confirms no delays or cancellations. Nevertheless, the project aligns strategically with Algeria’s downstream chemical expansion plans.
Investors and contractors often adjust schedules due to financing, market volatility, or regulatory approvals. Therefore, the absence of updates does not indicate termination. Instead, Tecnimont and Sonatrach continue preparation for mobilization when conditions permit.
Similar projects such as Algeria Chemicals Complex have stopped due to financial pressures delaying execution. Likewise, the Skikda LAB project shows the challenges in Algeria’s downstream sector. Therefore, both projects demonstrate how large-scale industrial developments require stable financing, careful planning, and regulatory alignment before reaching construction milestones.
Capacity of the Plant as Required in the Algeria Petrochemical Plant Contract
The new LAB shall have a capacity of 100,000 tonnes annually. The scope of this project entails associated utilities, the offsite works, and lastly the interconnection works that will be done to the already existing facilities.
Sonatrach chose Tecnimont for the Algeria Petrochemical Plant Contract after conducting a thorough tendering process thanks to the companys good track record in project implementation and its long presence in the country, revealed a top official.
“It is indeed our honour to consolidate our impressive track-record with Sonatrach also considering the pre-existing strategic relationship that exists between these two countries in regards to the current global energy supply scenario,” stated Alessandro Bernini.
“This big achievement will strengthen further our footprint in this country (Algeria) and gives room for the volarization of the downstream petrochemical value chain, where indeed we are the undisputed world champion,” he added.
Other Tecnimont Projects in Algeria
Tecnimont has been involved in quite a number of contracts projects in Algeria other than the Algeria Petrochemical Plant Contract namely:
- The EPC works of the BirSeba Phase II and Mouiat Outlad Massaoud Field Development Project. The contract of this project is priced at $400 Million. It is located in the Touggourt area, approximately 130 kilometers in the northeast of Hassi Messaoud.
- A $248.5 million to construct a 4th liquefied petroleum gas (LPG) train located at the Hassi Messaoud gas field.
- $600 million deals for the extraction and transport of liquefied petroleum gas (LPG). Algerias national petrochemicals concluded a $400 million deal with Tecnimont for building of a liquefied petroleum gas plant that was supposed to be finished in a period of three years. The plant was purposed to have a capacity of 300 tonnes daily of condensate and 8.7 million cubic meters daily of gas. The Algerian pipeline company ENAC was also to construct a 65-kilometer conduit to connect the plant to a pre-existing transportation network in the east of the country. Sonatrach also made an announcement that it had finished reaching three other small-scale contracys for the LPG-related infrastructure and related equipment.
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Project Fact Sheet
Project Name: Skikda Linear Alkyl Benzene (LAB) Petrochemical Project
Location: Skikda Industrial Zone, Algeria
Value: $1.1 billion
Sector: Petrochemicals / Downstream Chemicals
Contract Type: EPCC (Engineering, Procurement, Construction & Commissioning)
Plant Output: 100,000 t/year of LAB
Scope: LAB unit, utilities, offsites, and refinery interconnections
Contract Award Date: March 2024
Scheduled Completion: Within 44 months (~2027–2028)
Status: Pre-construction planning; no reported progress
Project Team
Owner / Client: Sonatrach — Oversees strategy, funding, and integration with Algeria’s energy sector
Project Company: STEP Polymers — Manages project coordination and technical oversight
Main EPC Contractor: Tecnimont — Executes engineering, procurement, construction, and commissioning
Engineering Partners: Tecnimont internal teams — Lead design, procurement, and construction planning
Sponsors / Financial Partners: Sonatrach — Project sponsor and financier