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NewsSonatrach lands $1.5 billion contract to produce polypropylene

Sonatrach lands $1.5 billion contract to produce polypropylene

The company added that the project will start production within 42 months and is located in the town of Arzew in western Algeria.

Petrofac and its Chinese partner, China Huanqiu Engineering and Contracting Company (HQC), will set up two large integrated processing units for the production of polypropylene.

Petrofac’s stake in the contract is valued at over $1 billion.

“Algeria is a key market for Petrofac, and we are committed to supporting the delivery of critical infrastructure over the long term, as the country plays an increasingly important role as a major energy producer and transforms into major petrochemical projects,” said Tarek Kouache, CEO of Petrofac.

Petrofac has been operating in Algeria since 1997.

This contract comes amid the challenges Petrofac faces in 2022, as issues with the engineering and construction department resulted in a net loss of $310 million in 2022.

As for Sonatrach, the company had this week signed a contract with the Chinese company “Wanhua Chemical” to supply the Wanhua petrochemical complex in China with liquefied petroleum gas.

Algeria is seeking to increase its oil and gas production to take advantage of the surge in global demand in the aftermath of the war in Ukraine, and aims to double its gas production for export during the year 2023 to 100 billion cubic meters.

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Arab Desk
Arab Desk
The Eastern Herald’s Arab Desk validates the stories published under this byline. That includes editorials, news stories, letters to the editor, and multimedia features on easternherald.com.

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