Phosphate and Nitrogen Fertilizer Production Underway via Sonatrach Deals
Algerian energy group Sonatrach signed two engineering, procurement, and construction (EPC) contracts on August 12 with an Italian and a Chinese company, initiating a significant integrated phosphate project in the country's northeast. The signing ceremony occurred at the group's headquarters in Algiers, with government officials and company representatives present.
The first contract was awarded to Italian firm Saipem for the establishment of processing and fertilizer production facilities. These sites are designated for Bled El Hadba in Tébessa Governorate and Oued Kéberit in Souk Ahras Governorate, both located in the northeast. The second contract was secured by China Harbour Engineering Company (CHEC) and involves the construction of dedicated port infrastructure at Annaba Port. The Integrated Phosphate Project (PPI) aims to develop the extraction and enrichment of the Bled El Hadba phosphate deposit, followed by chemical transformation, and to utilize natural gas for the production of phosphated and nitrogen fertilizers, along with necessary intermediate products, at the Oued Kéberit site.
This project holds strategic importance for the Algerian economy, designed to meet the growing demands of the agricultural sector for fertilizers while allocating surplus production for export via Annaba Port, thereby enhancing added value for the nation's economy. The project's extraction capacity is set at 5.5 million tons of raw phosphate annually, with a concentrated phosphate production capacity of 3.2 million tons per year. At the Oued Kéberit site, the complex will include units for the annual production of 2.4 million tons of phosphated fertilizers and 570,000 tons of nitrogen fertilizers (urea), in addition to intermediates such as sulfuric acid, phosphoric acid, and ammonia. The contract signed with Saipem is valued at 500 million euros, and the project overall is anticipated to support national food security and foster wealth creation through the valorization of mineral resources and the development of related processing industries.
