Petrofac, leading a joint venture with petrochemical industry specialist, China Huanqiu Contracting & Engineering Corporation (HQC), has received notification of a conditional award by STEP Polymers (100 per cent Sonatrach subsidiary) to execute a significant petrochemical project in Algeria.

 The total contract value is approximately $1.5 billion, with Petrofac’s share valued at over $1 billion.

The plant will be located at the Arzew Industrial Zone, west of Algiers and it is expected to produce 550,000 tons of polypropylene per year.

Covering the design and build of two major integrated processing units, the contract includes the delivery of a new propane dehydrogenation unit and polypropylene production unit, as well as associated utilities and infrastructure for the site.

Tareq Kawash, Petrofac’s Group Chief Executive, said: “We are proud to be supporting our customer to deliver this strategic project. Algeria is a core market for Petrofac and we are committed to supporting the long-term delivery of critical infrastructure as the country plays an increasingly important role as a major energy producer and moves into major petrochemical projects.”

Elie Lahoud, Chief Operating Officer for Petrofac’s Engineering & Construction division, said: “The award of this major project builds on Petrofac’s 25-year track record of successfully supporting Algeria’s energy industry. As our client responds to the world’s increasing demand for petrochemical products, we are looking forward to developing our breadth of experience in-country, through the safe and timely delivery of this project.”