Saipem, CHEC Secure Key Algerian Phosphate Contracts
Sonatrach has recently concluded two key engineering, procurement, and construction contracts, marking a significant step forward for Algeria's Integrated Phosphate Project. These agreements involve a major Italian group and a prominent Chinese company, outlining specific developments for mining, industrial transformation, and export logistics within this vital national program.
The first contract, signed with Italy's Saipem, focuses on establishing critical treatment and fertilizer production facilities. These installations are planned for Bled El Hadba in Tébessa Province and Oued Kéberit in Souk Ahras Province. This agreement, valued at approximately 500 million euros according to an energy sector source, underscores the international confidence in Algeria's industrial ambitions. Concurrently, a second contract was awarded to China Harbour Engineering Company (CHEC) to develop essential port infrastructure in Annaba, crucial for the efficient export of the project's output.
The Integrated Phosphate Project is centered on the exploitation of the Bled El Hadba deposit, aiming for an annual extraction capacity of 5.5 million tonnes of crude phosphate, with 3.2 million tonnes designated for conversion into concentrated phosphate. A substantial part of this industrial transformation will occur at the Oued Kéberit complex, projected to annually produce 2.4 million tonnes of phosphated fertilizers and 570,000 tonnes of urea, complemented by several chemical units for necessary industrial inputs. This comprehensive setup establishes a continuous logistical chain from mineral extraction in Tébessa to processing in Souk Ahras and finally to maritime shipment from Annaba.
This initiative reflects Algeria's strategic commitment to enhance the local transformation of its natural resources, thereby moving beyond simple extraction. By developing large-scale fertilizer production, the nation aims to reduce imports and generate new export revenues, contributing to economic diversification and lessening reliance on hydrocarbon income. The abundant availability of Algerian natural gas plays a crucial role in this production chain, particularly in the manufacturing of nitrogenous fertilizers and intermediate products, positioning Algeria advantageously in the global fertilizer market.
