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Sonatrach-Total JV to begin construction of PP plant in Algeria in July

DOWNSTREAM CENTRAL ASIA AND CASPIAN

Sonatrach-Total JV to begin construction of PP plant in Algeria in July

A joint-venture (JV) between Total and Sonatrach is expected to begin construction of its Algerian polypropylene (PP) plant in July 2023, said the company.

Source: MRChub

There is very little domestic PP production in North Africa compared to demand, and the region mostly relies on exports from Europe and the Middle East. The STEP PP plant will have a nameplate capacity of 550,000 tonnes/year of homopolymer.

Well-documented and commonplace shipping problems connected with Algeria are not expected to impact the plant as upstream material will be provided by the Erg Issouane gas field.

The JV will initially concentrate on Algeria and its neighbouring countries, such as Morocco and Tunisia. A 50% share will also be reserved for export, with Europe the main focus.

We remind, Eni CEO, Claudio Descalzi, and the CEO of Sonatrach, Toufik Hakkar, signed in Algiers two agreements which outline future joint projects on energy supply, energy transition and decarbonisation. The agreements were signed in the presence of the Prime Minister of Italy, Giorgia Meloni, and the President of the People's Democratic Republic of Algeria, Abdelmadjid Tebboune.

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