Jul 16, 2007 Reuters Total 発表 Total and Sonatrach Confirm Construction of a Petrochemical Complex
Algeria awarded a contract to France's Total SA on Monday to build and operate a steam cracking complex able to produce 1.4 million tonnes of ethane per year, officials said.
The project is worth over $3 billion and the plant, to be built on Algeria's northwest coast in partnership with state energy firm Sonatrach, will also produce polyethylene and ethylene glycol.
The plant will be financed 49 percent by Sonatrach and 51 percent by Total and the products will be sold on the national and international markets.
It is the first of six petrochemical projects Algeria has launched for an estimated overall value of $12 billion.
The results of a further tender for a complex capable of producing 1 million tonnes of methanol per year were expected later on Monday, the officials said. That project will also be a partnership of Sonatrach and a foreign company.
Algeria awards contracts for petrochem projects
In a bid to diversify the
range of products the country produces from its abundant
hydrocarbon reserves, Algeria has awarded contracts to the tune
of more than US$4 billion for petrochemical infrastructure
France's Total SA has been awarded a tender to build and operate a steam cracking complex producing 1.4 million tpa of ethane. The project, worth more than US$3 bln, is to be located at Algeria's northwest coast in partnership with state energy firm Sonatrach, will also make polyethylene and ethylene glycol. It will be financed 49% by Sonatrach and 51% by Total and will cater to demand in domestic as well as international markets.
The government has awarded a contract to build a 1 million tpa methanol to the Almet consortium of foreign and local firms, at an estimated investment of US$1 bln. The Almet consortium includes Mitsui of Japan, Qurain of Kuwait, German firm Lurgi as well as companies from Algeria and Trinidad, and will hold a 51% stake in the project. Sonatrach will hold the balance 49% stake.
These two plants are the first of six petrochemical projects Algeria has launched for an estimated overall value of US$12 bln. Algeria is rapidly expanding output of oil and natural gas and wants to invest heavily in petrochemicals to diversify the range of products for export and get more value from its energy supplies.
AFX News Limited 2007/7/17
Algeria plans 12 bln usd petrochemical complex; Total, Almet win orders
The Algerian government has awarded contracts to Total SA and an international consortium, Almet, worth a combined 4 bln usd, to build two new petrochemical plants as part of a 10-unit petrochemical complex with an estimated investment of 12 bln usd.
'These two plants are part of a programme of about 10 petrochemical units with a total cost of 12 bln usd, of which five are still to be built', said the vice-president of Algerian state oil company Sonatrach's downstream activities, Abdelhafid Feghuli, last night after the two contracts were signed.
French oil company Total signed a contract worth 3 bln usd (2.18 bln eur) to build an ethane cracker at Arzew in western Algeria to manufacture various types of polyethylene and ethylene destined for domestic and international markets, Sonatrach国営石油会社 said.
A joint venture will be formed for the ethane cracker plant, in which Total will hold 51 pct and Sonatrach will hold 49 pct. Total was competing with Saudi group Sabic for the order, but the French group won the order as it offered Sonatrach a 70 pct share of the profits, while Sabic only offered 55.12 pct.
The Almet consortium comprises Kuwaiti company Qurain, German company Lurgi, Trinidad's PPSL, Japan's Mitsui, and Algerian company Sotraco. Sonatrach awarded Almet the contract to build a methanol production facility at the Arzew industrial zone. The amount of the investment is estimated at 1 bln usd, and annual production is estimated at 1 mln tonnes of methanol, destined for the international market.
A joint venture will also be formed for this plant, in which Sonatrach will hold 49 pct and Almet 51 pct. Almet has offered Sonatrach a 76.09 pct share of the profits.
July 17, 2007 Total
Total and Sonatrach Partner to Build a Petrochemical Complex in Algeria
Following a call for tenders, Total has been selected to build a petrochemical complex in Arzew, near Oran, Algeria, in partnership with Sonatrach.
The project encompasses the construction of an ethane cracker and three product lines. The cracker will have a capacity of 1.4 million metric tons per year. The feed gas will come from southern Algerian fields. The cracker will produce around 1.1 million metric tons of ethylene per year, which will be processed into 410,000 metric tons of monoethylene glycol, 350,000 metric tons of high density polyethylene and 450,000 metric tons of linear low density polyethylene, mainly for export.
The investment required is estimated at around $3 billion. Development design will be launched shortly, with commissioning of the units scheduled in about five years.
The project is in line with Total’s strategy of expanding its petrochemical activities through world-class facilities and securing preferred access to feedstock.
Present in Algeria since 1946, Total’s equity production was 80,000 barrels of oil equivalent per day in 2006 coming from Hamra and Tin Fouyé Tabankort fields as well as stakes in the Rhourde El Khrouf and Ourhoud fields through its interest in Cepsa.
2007/12/4 Total 2007/7/25 アルジェリアの石油化学計画
Total and Sonatrach
Confirm Construction of a Petrochemical Complex in Arzew, Algeria
Christophe de Margerie, Chief Executive Officer of Total, and Mohamed Meziane, Chairman and Chief Executive Officer of Sonatrach, today signed a framework agreement to build a petrochemical complex in Arzew, near Oran.
The agreement follows on from the Memorandum of Understanding signed this summer by the two companies to jointly develop a petrochemical complex equipped with an ethane cracker and three product lines. Both parties have conducted feasibility studies, in particular to determine the location of the complex and unit capacity. As a result, technology tenders will be soon issued.
The cracker will have a capacity of 1.4 million metric tons per year, with the feed gas coming from fields in southern Algeria. It will produce 1.1 million metric tons of ethylene per year, which will be processed into polyethylene (two units with a total capacity of 800,000 metric tons per year) and monoethylene glycol (550,000 metric tons per year). The products will be mainly for export, with some also sold in the domestic market.
The investment required is estimated at around $3 billion, with commissioning of the units scheduled within five years.
“Total is delighted with this agreement, which is in line with our strategy of expanding our petrochemical activities based on world-class facilities. It signals our entry into Algeria’s petrochemical industry and strengthens the existing partnership between Total and Sonatrach in oil exploration and production,” said Christophe de Margerie.
France's Sarkozy Picks Contracts Worth $7.3bn In Algeria 
France and Algeria signed a landmark nuclear cooperation agreement Tuesday, the first such accord between France and an Arab Muslim country, during a visit by French President Nicolas Sarkozy.
The three-day visit by the French president netted contracts worth more than $7.3 billion, including construction by Total of a petrochemical complex in Arzew, in the west, and transport contracts.
The nuclear agreement would allow France to transfer nuclear technology and the eventual construction of a nuclear reactor for civilian use in this North African nation. However, the European Community of Atomic Energy must approve the framework nuclear cooperation accord.
The agreement is far bolder than a June protocol the United States signed with Algeria, which was mainly limited only to an exchange of experts and the development of common research programs.
Sonatrach and Total in discussion again about Arzew Petrochemical Complex
Qatar Petroleum holds 10% of $3 billion Arzew project
Since Total and Sonatrach had announced the giant Arzew petrochemical complex, the project had to be put on hold by the lack of ethane as feedstock to supply the cracker.
This ethane should come from the Hassi R’meil natural gas fields, but transportation along the 500km to Arzew petrochemical complex site requested deeper evaluations than expected.
Anyway in the meantime Algeria voted the 51/49 bill to impose by law that Algerian companies should have at least 51% stake in joint ventures.
Thus Qatar Petroleum (QP) was introduced in the joint venture to adjust the previous share holding Total (51%) Sonatrach (49%) to the new regulation.
Today the partners share working interests as following:
- Sonatrach 51%
- Total 39%
- QP 10%
Sonatrach, Total and QP are planning to invest $3 billion capital expenditure in this olefins complex.
Sonatrach, Total and QP to build 1.4 million
The ethane cracker is designed with a capacity of 1.4 million t/y to produce 1.1 million t/y of ethylene.
Then the ethylene should be used as feedstock for three polyolefins production lines:
- 450,000 t/y of linear low density polyethylene (LLDP)
- 350,000 t/y of high density polyethylene (HDPE)
- 410,000 t/y monoethylene glycol (MEG)
Alike Qatar, Algeria is looking for diversifying its revenues in producing higher added value petrochemical products in order to reduce it reliance on low natural gas market prices.
These low gas prices give a competitive advantage to Algeria in producing costs competitive hydrocarbon products to be exported, but in the same time they make more difficult the financing of such large project.
In 2010, Sonatrach and Total had called for tender the front end engineering and design (FEED) of the Arzew petrochemical complex project.
Engineering companies submitted offers for this FEED but the whole bidding process was stopped when the project was shelved.
At that time the project was due to come for completion and commercial operation in 2014.
This Arzew petrochemical complex is not the only one to have been stopped because of the lack of gas feed stock.
Sonatrach is also planning a $850 million methanol plant and a $600 million integrated propane dehydrogenation and polypropylene complex, both in Arzew.
Sonalmeth, owned 49% by Sonatrach and 51% by Algerian Methanol Company, or Almet（.local/international JV including Lurgi of Germany 、Kuwait's Qurain Petrochemical Industries Company、Mitsui and Sotraco ）, plans to develop the greenfield methanol plant in the Arzew Industrial Zone in northwest Algeria. The project is part of Sonatrach's program to build six new petrochemical units
Sonatrach awarded Almet the contract to build a methanol production facility at the Arzew industrial zone. The amount of the investment is estimated at $1 billion, and annual production is estimated at 1 million tonnes of methanol, destined for the international market.
The consortium comprises Kuwaiti company Qurain, German company Lurgi, Trinidad's PPSL, Japan's Mitsui, and Algerian company Sotraco.
Algeria, Total to Pen Methanol Plant Deal
Algeria's Sonatrach and France's Total will sign a contract for the Arzew methanol plant in Oran, Algeria, in September 2012, to coincide with the visit of new French president Francois Hollande to Algeria, a senior official stated.
Hollande's visit will include a new round of negotiations between Total and Sonatrach on building the plant with a production capacity of 1.6 million tons per year. Construction is likely to begin early 2013, the official said on condition of anonymity.
Algeria "has been able to overcome the problem" of ethane supply to the plant from the Hassi Raml area by importing it from southern Algeria, the official said. According to the Zawya Projects Monitor, Sonalmeth, owned 49% by Sonatrach and 51% by Algerian Methanol Company, or Almet, plans to develop the greenfield methanol plant in the Arzew Industrial Zone in northwest Algeria. The project is part of Sonatrach's program to build six new petrochemical units.
Within the center of Algeria, in Sahara region, four fields, Touat, Ahnet, Timmimoun and Reggane North are able to deliver 13.1 billion cubic meter per year of natural gas to these petrochemical projects in Arzew.
In this context, all the conditions are converging to help Sonatrach and its partners Qatar Petroleum and Total Sonatrach in finding solution on the gas pipeline in the near future to let move all the Arzew petrochemical projects on again.
The Algerian chemicals industry is based
in three centres: Skikda, Arzew and Annaba. These sites are industrial and
refining centres and include the Arzew refinery and the Skikda refinery. The
refinery at Skikda has an aromatics complex that supplies benezene, toluene,
xylenes, paraxylenes and linear alkyl benzene.
ENIP has an integrated chlor-alkali/petrochemical complex at Skikda. Products produced at Skikda include:
chlorine & caustic soda
Vinyl chloride monomer (VCM)
Polyvinyl chloride (PVC)
The petrochemical centre at Arzew produces petrochemicals including fertilisers. Apart from fertiliser components and finished products, Arzew is the source of methanol and associated products. The range of products and capacities are:
Sonatrach announced that ENIP, its petrochemical subsidiary,
ForALGERIA - ENIP - Skikda Ethylene Complex.
This consists of an ethane cracker producing ethylene, on stream since 1978, and downstream units. Under a contract signed in 1971, Toyo Engineering of Japan built the 120,000 t/y ethylene plant, and in 1979 brought on stream a 40,000 t/y vinyl chloride monomer (VCM) plant as well as a 35,000 t/y PVC unit. A 48,000 t/y low density polyethylene (LDPE) unit built by Snamprogetti of Italy started production in 1980. The complex now has a 10,000 t/y hydrochloric acid unit. But the ethylene plant, based on the Bloomfield process (ABB Lummus Crest, NJ), could only run at 80% of capacity by the late 1980s.
In early 1988, ENIP decided to build two more plants at the complex to produce 130,000 t/y of high density polyethylene (HDPE) and 70,000 t/y of plastifiers. For these it had to expand the ethylene plant to 220,000 t/y. Stone & Webster in 1991 submitted plans to expand the plant in three phases: (1) restoring its 120,000 t/y capacity, (2) removing the bottlenecks, and (3) adding a 100,000 t/y capacity based on its Advanced Recovery System (ARS) - with all work to be completed in 1995. Due to delays, ENIP in 1994 set the completion date for early 1996, in time to supply the HDPE plant - and the cost of the project including the latter plant was estimated at $300m. Neither the ethylene expansion nor the HDPE plant was completed on schedule.
Societe Maghrebine de Resines (Enisa), another ENIP-Repsol JV, was formed in 1991 and had a 10,000 t/y polyester resins plant built at Arzew at the cost of about $40m.