Total signs MoUs in Algiera and Oman

Total has signed an agreement with Sonatrach to launch engineering studies for a petrochemical project in Arzew, western Algeria. The project, which represents an investment of around $1.4bn by the two partners (Sonatrach 51%, Total 49%), includes a propane dehydrogenation (PDH) unit and a polypropylene production unit with an output capacity of 550,000 t/y.

The facility will valourise propane, produced in large quantities locally, by transforming it into polypropylene, a plastic for which demand is growing strongly.

‘This project in Algeria illustrates our petrochemical growth strategy which consists of expanding our activities from competitively advantaged feedstock, especially derived from gas, to take advantage of the growing global plastics demand. This polypropylene project complements our other projects announced recently in the US, in the Middle-East and in Asia, which are primarily focused on polyethylene’ commented Patrick Pouyanné, Chairman and Chief Executive Officer of Total. ‘It is also an opportunity to strengthen our cooperation with Sonatrach, by moving beyond our long-standing exploration and production relationship to invest in the downstream together.’

Total has also signed an MoU with the government of Oman to develop natural gas resources in the country. The MoU covers both upstream and downstream businesses. Total and Shell, as operator, will develop several natural gas discoveries located in the Greater Barik area on onshore block 6, with the objective of an initial gas production of around 500mn cf/d and a potential to reach 1bn cf/d at a later stage.

Total will use its equity gas entitlement as feedstock to develop a regional hub in Oman for LNG bunkering service to supply LNG as a fuel to marine vessels. A new small-scale modular liquefaction plant is to be built in Sohar port, which will comprise a train of around 1mn t/y and will offer the flexibility for expansion as required by the development of the LNG bunkering market.