Sonatrach selects four firms for petrochemical projects in Algeria

Algerian state oil company Sonatrach has prequalified four international firms to compete for contracts related to two major petrochemical projects. The selected companies include China's China HuanQiu Contracting & Engineering (HQC), Egypt's Enppi, Spain's Tecnicas Reunidas, and the United Kingdom's Wood Group.

The projects aim to enhance Algeria's local resource transformation and downstream capabilities. The first involves establishing a production unit for Group II and III base oils at the Arzew refinery in Oran. The second focuses on developing an ethylene production complex in the Skikda industrial zone.

Contracted services will include Front-End Engineering Design (FEED) studies, the provision of industrial process licenses, and Project Management Consultancy (PMC). These developments are part of a broader national strategy to increase the production of high-value-added goods, such as lubricants and plastics, rather than relying solely on raw hydrocarbon exports.