Sonatrach Officialises The Launch Of A Large Petrochemical Project In Turkey

The national hydrocarbons company (Sonatrach) officialized the launch of its huge petrochemical plant project in Adana, Turkey, with its partner, Ronesans, at an investment cost of $ 1.4 billion, that will be financed by 70% through bank loans and 30% by the project shareholders.

A statement from Sonatrach, which copy was received by Echorouk, said it signed, Thursday, through its subsidiary Sonatrach Petroleum Investment Corp. (SPIC) and the Turkish company CPEY of Ronesans in Istanbul, a series of contracts to launch engineering studies for a petrochemical complex to produce propylene and polypropylene (PP-PDH), which will be completed in the Turkish region of Seyhan in the southern province of Adana.

The statement explained that the parties had launched on August,19, 2019, a joint venture company under Turkish law, as the company’s capital is estimated at 34% for the Algerian party and 66% for the Turkish party.

The large project’s company will undertake the design, engineering, construction and utilization of a production capacity of 450,000 tons per year of polypropylene in Turkey’s Seyhan industrial zone for petrochemical development.

The project will allow Sonatrach to secure an Algerian propane gas market for a long period up to 2040 with an estimated amount of 540,000 tons per year and to generate financial returns as a 34% shareholder in the project.