The first two projects in Algeria’s $15bn petrochemicals masterplan are set to pass a critical stage within weeks, with France’s Total and the local/international consortium Almet expected to sign joint venture deals with state energy company Sonatrach.

Total has already launched tenders for the contract to provide technology for its $3bn scheme to build an ethane cracker at Arzew in the northeast. Almet’s deal covers a $700m methanol plant, also located at Arzew. Only five companies have the technology to develop the ethane facility: the US’ KBR; Germany’s Linde; Paris-based Technip; Stone & Webster, part of the US-based Shaw Group; and Europe’s ABB Lummus.

Total is understood to be devoting considerable resources to its 1.4 million-tonne-a-year facility, in the wake of a framework agreement signed with Sonatrach in December 2007.

Total declined to comment on the status of its joint venture talks with Sonatrach. However, a senior source close the project tells MEED the project is high on Total’s agenda.

“Total is completely committed to the project, to the exclusion of other projects,” says the source. “There is a maelstrom of corporate activity around the scheme. The best people in the company are working on it.”

Almet is expected to sign its joint venture agreement by mid-February at the latest.

“We hope to incorporate the project company in the next two weeks,” says Ahsene Bouhroum, Middle East sales manager at Germany’s Lurgi, a member of the consortium.

Lurgi will be the lead engin-eering and construction contractor on the 3,000-tonne-a-day methanol project. Front-end engineering and design work is expected to take up to eight months to complete, while construction work will take a further 32 months.

The other members of the Almet consortium are Japan’s Mitsui & Company, Kuwait’s Al-Qurain Petrochemical Company and the local Sotraco.

Sonatrach will take a 49 per cent stake in each project once it has signed the two agreements with Total and Almet.

The new project companies will be responsible for building the facilities as well as distributing and marketing the end-product.

Total and Almet signed memorandums of understanding to develop the two schemes in July 2007. Algiers is also in talks with technology providers for a proposed fuel oil cracker at Skikda, which is expected to be the next contract to be awarded.

In November 2007, Energy Minister Chakib Khelil said the country would spend more than $10bn on developing its petrochemicals industry in 2008 (MEED 9:11:07).

Other aspects of the masterplan include a naphtha/condensate steam cracker and an integrated propane dehydrogenation and polypropylene plant, also at Arzew.

Total and Almet won the contracts to build and operate the ethane and methanol plants at Arzew, following the public opening of commercial bids in July 2007 (MEED 20:7:07).