Chinese in fuel oil cracker talks

Algiers is in discussions with China National Petroleum Corporation (CNPC) for the contract to take a majority stake in the development of a

world-scale fuel oil cracker at Skikda in the northeast, say industry sources.

However, CNPC's failure to meet the bid deadline and the withdrawal of the two original bidders mean that the future of the project is still in doubt.

'I don't know if [state energy company] Sonatrach will be able to go ahead with CNPC,' says a source close to the project. 'They failed to submit all the necessary documentation to the client, so technically, they

did not meet the eligibility requirements.'

If awarded the contract, CNPC will take a 65 per cent stake in the development of a 4.5 million tonne-a-year fuel oil catalytic cracker, with Sonatrach taking the remaining 35 per cent. 'If negotiations with CNPC fail, Sonatrach will be forced either to retender the contract, or to find a technology partner and develop the facility itself,' says the source.

A team of France's Total with the local Societe Nationale de Raffinage de Petrole (Naftec), and a consortium of Stone & Webster, part of the US' Shaw Group, Europe's Basell and Saudi Arabia's Zamil Group, both withdrew their bids.

Total is thought to be focusing on the Arzew ethane cracker scheme. The Stone & Webster group is understood to have pulled out due to a lack of capacity.

The fuel oil cracker is one of five remaining schemes in Sonatrach's programme to develop worldscale petrochemicals facilities. The first award for a methanol plant at Arzew is expected in mid-March (MEED 23:2:07).

www.meed.com/petrochemicals