Tenders for the contract to provide technology for a major new petrochemicals facility in northwest Algeria are expected to be issued in early 2008 following the conclusion of a framework agreement to develop the project.

France’s Total and state energy company Sonatrach signed a framework agreement on 4 December to build a 1.4 million tonne-a-year (t/y) ethane cracker at Arzew, near Oran. The development will cost an estimated $3bn.
The facility will produce 1.1 million t/y of ethylene, which will be processed by two units producing a total of 800,000 t/y of polyethylene and a monoethylene glycol unit with capacity of 550,000 t/y.

Feasibility studies have been carried out by Total and Sonatrach to determine site location and unit capacity. The facility is expected to be commissioned by the end of 2012. The framework agreement follows a memorandum of understanding signed in July