Petrofac led JV selected for $1.5 billion EPC project in Algeria
May 18, 2023 by Energy ConnectsPetrofac, leading a joint venture with petrochemical industry specialist China Huanqiu Contracting & Engineering Corporation (HQC), has received notification of a conditional award by STEP Polymers SPA, a fully owned subsidiary of Sonatrach, to execute a significant petrochemical project in Algeria.
The total contract value is approximately US$1.5 billion, with Petrofac’s share valued at over US$1 billion, the company said on Thursday. The plant will be located at the Arzew Industrial Zone, west of Algiers.
Covering the design and build of two major integrated processing units, the contract includes the delivery of a new propane dehydrogenation unit and polypropylene production unit, as well as associated utilities and infrastructure for the site. It is expected to produce 550,000 tons of polypropylene per year.
Tareq Kawash, Petrofac’s Group Chief Executive, said: “We are proud to be supporting our customer to deliver this strategic project. Algeria is a core market for Petrofac, and we are committed to supporting the long-term delivery of critical infrastructure as the country plays an increasingly important role as a major energy producer and moves into major petrochemical projects.”
Elie Lahoud, Chief Operating Officer for Petrofac’s Engineering & Construction division, said: “The award of this major project builds on Petrofac’s 25-year track record of successfully supporting Algeria’s energy industry. As our client responds to the world’s increasing demand for petrochemical products, we are looking forward to developing our breadth of experience in-country, through the safe and timely delivery of this project.”
Petrofac has been active in Algeria since 1997, when it opened its first office in Algiers. The company has since developed some of the country’s most significant oil and gas assets, with an impressive track record in executing projects successfully, underpinned by a commitment to supporting the nationalisation agenda and developing local workforces.
This contract award forms part of the $1.5 billion of opportunities described by Petrofac as being at preferred bidder stage in its December trading update, the company said.
More News

Qatar Offers Looser LNG Contract Terms to Entice Asian Buyers
Jun 06, 2023
Goldman Analyst Warns Wrong ESG Bets Threaten Energy Investments
Jun 05, 2023
Gastech unveils 2023 strategic conference programme, high-level keynote speakers
Jun 05, 2023
Mystery Trader’s Debt-Ceiling Windfall Sparks Insider Concerns
Jun 04, 2023
Germany Needs €14 Billion to Make Gas and Heating Networks Clean
Jun 02, 2023
South Africa May Burn Heavy Fuel Oil to Ease Record Blackouts
Jun 01, 2023
Exxon Bets New Ways to Frack Can Double Oil Pumped From Shale Wells
Jun 01, 2023
Indonesia Considers Limits on LNG Exports in New Trade Curbs
May 31, 2023
Messer Nears GIC Stake Sale at Over €12 Billion Valuation
May 30, 2023