Sonatrach hires Saipem and CHEC for Algerian phosphate build

Algeria’s Sonatrach and the Algerian Fertilizers Company (AFC) on 12 August signed engineering, procurement and construction contracts with Italy’s Saipem and China Harbour Engineering Company (CHEC) for the first phase of the country’s Integrated Phosphate Project (PPI). The ceremony at Sonatrach’s Algiers headquarters was chaired by Hydrocarbons Minister Mohamed Arkab and attended by the Chinese and Italian ambassadors.

Saipem’s Limited Notice to Proceed is worth approximately €500 million ($580 million) and covers EPC of the phosphate processing and fertilizer production facilities at Bled El Hadba (Tébessa province) and Oued El-Kebrit (Souk Ahras province). CHEC will build the associated port facilities at Annaba. The full EPC contract with Saipem is still being finalised.

Once operational, the complex is designed to mine 5.5 million tonnes/year of run-of-mine phosphate rock and to produce 3.2 million tonnes/year of phosphate concentrate, 2.4 million tonnes/year of phosphate fertilizers and 570,000 tonnes/year of urea, along with by-product sulphuric acid, phosphoric acid and ammonia.

Sonatrach said the project would allow Algeria to transform its phosphate and natural gas resources domestically before selling the output “on the national market and for export”.