Algerian national oil company Sonatrach and French oil company Total are still discussing details of the planned $1.4bn petrochemical facility that is due to be constructed in the eastern port city of Arzew.

The prequalification process for the front end engineering design (feed) contract is yet to begin, according to industry sources. 

“So far, there are no contractors involved,” one source said.

At the moment, contractors are expecting the feed contract to be tendered before the end of the year and the engineering, procurement and construction (EPC) contract to be tendered in 2019.

Total will own 49 per cent stake in the Arzew petrochemical project and Sonatrach will own the remaining 51 per cent stake, according to an agreement that has been signed by both companies.

The planned facility is a propane dehydrogenation (PDH) polypropylene (PP) production plant with an annual output capacity of 550,000 tons.