Algerian state hydrocarbon company Sonatrach announced on Thursday the award of a contract to implement a petrochemical plant in the western coastal province of Oran, at a total cost of $ 1.5 billion.
The Sonatrach statement said the contract was awarded to an international consortium made up of British-based multinational PETROFAC and China's HQC.
A 100% owned subsidiary of Sonatrach awarded the engineering, supply and construction contract for the plant, which will be implemented in the industrial zone "Arzew" in the province of Oran (west) to produce 550,<> tons per year of polypropylene (plastic).
The cost of the plant is $1.5 billion, with an estimated completion time of 42 months.
Sonatrach noted that the selection came after the launch of an international tender in April 2021, and the deal was won by the best bidder, the complex of Petrovac and HQC.
The project was announced in May 2018 in partnership between Sonatrach and Total with a 51% stake for Algeria and 49% for the French company, but the plant faced administrative problems and work did not start.
Polypropylene is a plastic material used in automotive, textile, construction, pharmaceutical and other industries.
The Algerian company is implementing a similar project in the southern Turkish province of Adana in partnership with Renaissance Holding, and the plant will have a production capacity of 450,<> tons per year of polypropylene.