Total has signed an agreement with Sonatrach to launch engineering studies for a petrochemical project in Arzew, western Algeria, as part of the comprehensive partnership announced in 2017.
The project includes a propane dehydrogenation (PDH) unit and a polypropylene production unit with an output capacity of 550,000 tons per year. The project represents an investment of around $1.4bn by the two partners (Sonatrach 51%, Total 49%), who are planning to start the front-end engineering and design (FEED) this summer, subject to approval by the relevant Algerian regulatory authorities. The facility will valorize propane, produced in large quantities locally, by transforming it into polypropylene, a plastic for which demand is growing strongly. Primarily, it will supply the local and Mediterranean demand and Total will be responsible for the commercialization of the rest of the production in Europe, where it will leverage its market expertise to the benefit of both partners.
Total’s exploration and production activities in Algeria date back to 1952. In 2017, Total produced 15,000 barrels of oil equivalent per day (boe/d) in Algeria, all of it from the Tin Fouyé Tabankort (TFT) gas and condensate field. The Group currently holds a 35% interest in TFT.
In March 2018, Total started up production from the Timimoun gas field in southwestern Algeria. The group has a 37.75% interest in the field, which has a production capacity of 5 million cubic meters of gas per day (around 30,000 boe/d). Total also markets lubricants and bitumen in Algeria.
