A partnership with Algeria’s state-owned Sonatrach is under discussion, according to local reports.

Qatar is paving the way to build a new chemical plant in Algeria as part of a potential partnership with the country’s state-owned Sonatrach, Elkhabar Daily reported.

The partnership between Qatar’s Power International Holding and Sonatrach would include the construction of a new petrochemical complex that will produce raw materials like Butene and Polybutene.

On Thursday, Algeria’s Minister of Energy and Mines Mohamed Arkab received a Qatari delegation that included Ambassador Abdul Aziz Ali Al-Nama in the Algerian capital, local media reported.

“Sonatrach is ready to work with Power International to achieve that project, which is part of Algeria’s strategy to develop the industrial sector,” Algerian Energy Minister Mohammed Arkab told Elkhabar daily.

Algeria has implemented new hydrocarbon laws that are designed to attract investors and stimulate finding, processing, as well as creating a robust energy ecosystem designed to serve as a long-term vision for Algeria’s economic growth and job creation.

The report said another meeting will be organised in September to “deepen talks with Sonatrach in this regard.”

It added that the Qatari ambassador welcomed the collaboration between the two countries as well as willingness and interest by Qatari companies to invest in major projects in Algeria, including in the field of research, exploration, manufacturing and petrochemical industries.

Fitting into Algeria’s petrochemical strategy

Sonatrach has sharpened its focus on petrochemicals with assets that employ nearly 3,000 people and generate nearly $2bn in sales annually.

Petrochemistry is a strategic option for Sonatrach and for Algeria, and allows valourizing hydrocarbons and meeting domestic demand for petrochemical products which in turn reduce the country’s import bill, creates direct and indirect jobs, and leads to the creation of small and medium-sized companies in a variety of petrochemical segments.

So far, Sonatrach’s petrochemical programmes have led to the construction and/or studies of new plants including a partnership with Total Energies, Turkey, and a British Chinese consortium.