Petrofac, a leading international service provider to the oil and gas industry, has been granted a conditional award by STEP Polymers SPA, a wholly-owned subsidiary of Sonatrach, to undertake a significant petrochemical project in Algeria.
The project, valued at approximately $1.5 billion, will contribute to the Arzew Industrial Zone’s development, located west of Algiers. This venture marks Petrofac’s expansion into the petrochemical sector and further strengthens its longstanding presence in Algeria.
Expanding Petrofac’s Portfolio
The awarded contract solidifies Petrofac’s position within the petrochemical industry, complementing its extensive 25-year experience in Algeria. As a key market for the company, Petrofac remains committed to supporting the nation’s energy strategy and participating in critical infrastructure projects. The partnership with China Huanqiu Contracting & Engineering Corporation (HQC), a specialist in the petrochemical sector, further enhances Petrofac’s capabilities in delivering complex projects.
Project Scope
The project encompasses the design and construction of two integrated processing units within the Arzew Industrial Zone. The contract includes the establishment of a propane dehydrogenation unit and a polypropylene production unit. Additionally, the scope covers the development of associated utilities and infrastructure for the site. The anticipated annual production output of the plant is 550,000 tons of polypropylene, a crucial material in various industries.
Tareq Kawash, Petrofac’s Group Chief Executive, 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.”
Elie Lahoud, Chief Operating Officer for Petrofac’s Engineering & Construction division, 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.” By focusing on local workforce development and adhering to stringent safety measures, Petrofac is well-positioned to execute the project efficiently.
Petrofac’s Legacy in Algeria:
Petrofac’s presence in Algeria dates back to 1997 when it established its first office in Algiers. Over the years, the company has played a pivotal role in developing some of the country’s most significant oil and gas assets. Petrofac’s successful project execution in Algeria has been driven by its commitment to supporting the nationalization agenda and nurturing local talent. This project award reinforces Petrofac’s status as a trusted partner in the Algerian energy industry.