Algiers to increase fertiliser exports following Arzew award

18 April 2008
Algeria is set to significantly boost its exports of fertiliser after state energy company Sonatrach signed two major contracts, valued at more than $2bn in total.

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).

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