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Sonatrach and the French group Total signed on Thursday in Oran an agreement on the creation of a joint venture on the building a polypropylene complex in Arzew (East of Oran).
[ecr] hidden The signing ceremony took place in the presence of Sonatrach‘s CEO Abdelmoumen Ould Kaddour, executives of the national oil group and local authorities, as well as the Managing Director of Total Algerie, Jean Pascal Clémençon and executives of the French group.
This petrochemical project includes a propane dehydrogenation plant (PDH) and a polypropylene production unit (PP) with a capacity of 550,000 tonnes per year. The project represents an investment worth $ 1.4 billion for both partners.
CEOs of the two companies, Abdelmoumen Ould Kaddour and Patrick Pouyanné, signed Sunday, October 7 in Algiers the shareholders’ pact of the joint venture, Sonatrach Total Polymer Enterprise (51% of STEP stakes are owned by Sonatrach and the remaining 49% by Total).
The STEP will also be responsible for marketing the product.
STEP, the first polypropylene production complex in Algeria is planned to be completed within 36 months. It will cover the needs of the country in the product which is currently imported.
The plant will produce 500,000 tonnes over the 2018-2023 period with an estimated bill of over $650 million.