New Sonatrach plant studies

Algerian state-owned oil and gas company Sonatrach reached agreements with Spanish firm Técnicas Reunidas and British engineering company Amec Foster Wheeler on Sunday to carry out studies for two new downstream facilities.

As part of the deals, the two entities will conduct studies for two new refinery processing plants, located in Skikda and Arzew.

Técnicas Reunidas will look into the Skikda plant while Amec Foster Wheeler is undertaking the study for the plant in Arzew. The two studies are valued about EUR 25 million.

The Skikda plant is expected to process 4.6 million tonnes of fuel oil and 4 million tonnes of naphtha for it to hit its production targets of 3.2 million tonnes of diesel and 3.5 million tonnes of petrol per year. Production from Arzew is projected to reach 75.000 tonnes of methanol and 150.000 tonnes of butane per year.

“The two refineries will transform us from a net importer to an exporter of refined products,” Sonatrach vice-president Akli Remini said in a statement. No construction timeframe for the facilities was given.