Sonatrach Awards $3.7 billion Refinery Deal to Consortium
Sonatrach has awarded a $3.7 billion engineering, procurement and construction contract to Tecnicas Reunidas and the Samsung Engineering Group for the construction of a 5 million ton per year oil refinery.
The new refinery, which will be located in Hassi Messaoud, Algeria, is part of Sonatrach’s program aimed at consolidating national production of fuels and lubricants to meet internal demand in the medium and long term, as well as to generate export volumes.
“The signing of this contract confirms our desire to further develop our hydrocarbon resources into refined products, and the needs of the national market in matter and on the other hand to contribute to satisfy the economic and social development of our nation through the strengthening of its industrial fabric,” Sonatrach CEO Kamel Eddine Chikhi said in a statement.
The refinery will produce propane, butane, kerosene and bitumen and is expected to be completed by 2024.