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Total and Sonatrach sign natural gas and petrochemicals agreements

Published by , Editorial Assistant
Hydrocarbon Engineering,

Sonatrach and Total have signed two agreements as part of the partnership announced in 2017.

As well as signing a concession contract for the development of the Erg Issouane gas field, the companies will create a joint venture known as Sonatrach Total Enterprise Polymères (STEP).

STEP will be responsible for carrying out a joint petrochemical project in Arzew, western Algeria. The project includes a propane dehydrogenation (PDH) unit and a polypropylene production unit with an output capacity of 550 000 tpy. The two partners (Sonatrach 51%, Total 49%) are planning to start the front-end engineering and design (FEED) from November. This project will transform propane into polypropylene.

The concession contract covers the joint development of the Erg Issouane gas reserves on the TFT Sud permit in Algeria. This development will be tied to the existing TFT gas treatment unit by a 22 km pipeline, and first gas is expected in late 2021.

The partners have also signed a gas marketing agreement.

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