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Algeria’s state petroleum firm Sonatrach and France’s Total have finalized their Sonatrach Total Entreprise Polymères (STEP) JV to develop a polypropylene complex at Arzew on the Mediterranean coast. Sonatrach will take its usual 51% equity, while Total will have 49%.
Total committed to the $1.4bn project in October, having signed an initial study agreement earlier in the year ( MEES, 12 October 2018 ). The complex will comprise a propane dehydrogenation unit, which will process locally produced propane to provide propylene feedstock for a 550,000 t/y polypropylene plant.
Although Sonatrach and Total have not given a start-up date for the complex, the Algerian energy ministry had earlier listed a near-identical project for which it anticipated contract signing in April 2018 and November 2020 start-up. ( MEES, 18 May 2018 ). Finance for the project will come 30% from equity and 70% through loans from Banque Nationale d’Algérie (BNA), according to official news agency APS. (CONTINUED - 145 WORDS)