ALGIERS – Sunday, 11 June 2023 (APS) – The company “STEP Polymers,” a subsidiary of SONATRACH, signed on Sunday in Algiers a contract with the British-Canadian consortium “Petrofac-HQC,” for the construction of a new petrochemical complex for the production of polypropylene in Arzew (Oran), as well as a financing agreement with the National Bank of Algeria (BNA) for the same project.

The contract was signed by Chairman of the Board of Directors of STEP Polymers, Boutouba Baatouche and Director of Operations of Petrofac, Roberto Bertocco, in the presence of Minister of Energy and Mines, Mohamed Arkab, CEO of SONATRACH, Toufik Hakkar, Executive Chairman of Petrofac, Tarek Kouache, representative of HQC and a representative of the British Embassy in Algiers.

The EPC (Engineering, Procurement, Construction) contract covers the construction of an 88-hectare petrochemical complex in the Arzew industrial zone, designed to produce 550,000 tonnes/year of polypropylene.

According to the explanations given at the contract signing ceremony held at the General Management headquarters, the construction period has been set at 42 months.

The new complex is expected to produce enough polypropylene to meet the estimated needs of the national market (120,000 tonnes/year) in various sectors, including pharmaceuticals, agriculture, transport, textiles and infrastructure, as well as the construction, automotive and shipbuilding industries. The surplus will be exported to markets in Europe, Asia and Africa.

The project will result in the creation of around 6,000 direct jobs during the construction phase, 450 jobs during the operation phase and 2,000 indirect jobs.

The project will also comply with national and international environmental protection rules and standards, with the implementation of a wide-ranging tree and vegetation planting programme in the province of Oran.