The engineering, procurement and construction contracts are for the development of two urea-based fertiliser complexes at Arzew on the northwest coast. In both cases, their output will primarily go to export markets.

A Japanese/Korean consortium of Mitsubishi Heavy Industries and Daewoo Engineering & Construction has won a contract worth more than $1bn to build an ammonia and urea complex, planned by Djazairia el-Omani Lil Asmida, a 49:51 joint venture of Sonatrach and Oman’s Bah- wan Group.

The fertiliser plant will generate 4,000 tonnes a day (t/d) of ammonia, which will be processed to produce 7,000 t/d of urea for export. Some liquid ammonia may also be exported.

The 90-hectare facility, at Mers el-Hadjaj in Arzew’s industrial zone, will require 2 billion cubic metres a year of natural gas. Funding for the complex will be provided by a consortium of banks led by Credit Populaire d’Algerie.

The second contract was signed by Sofert Algerie, a joint venture of Sonatrach and Egypt’s Orascom Construction Industries (OCI), with Germany’s Uhde.

It covers the engineering and procurement of a fertiliser complex with a production capacity of 4,400 t/d of ammonia and 3,450 t/d of urea.

Financing for the project has been arranged by a group of banks led by Banque Exterieur d’Algerie (MEED 26:6:07).