Banks fund Sonatrach’s $4.6bn fertilizer projects

05 February 2008 09:00  [Source: ICIS news]

DUBAI (ICIS news)--Algeria’s Sonatrach has chosen two local banks to finance a couple of ammonia projects costing $4.6bn, a source close to the state-owned chemicals company said on Tuesday.

The first $1.5bn loan from Credit Populaire Algerienne would part fund a $2.1bn facility in Arzew (about 400km from Algiers) in a joint venture with Egypt’s Orascom Construction Industries, the source added.

The plant would consist of an ammonia/urea production unit with a capacity of 1.1m tonnes/year and a second ammonia production unit with a capacity of 770,000 tonnes/year, the source said, adding it would be completed by 2010.

The second loan of $1.8bn would be guaranteed by Bank Exterieur Algerien and help part fund Sonatrach’s joint venture with Oman's Bahwan Group, which was a $2.5bn ammonia and urea plant, the source said.

Its capacity would run to 4,000 tonnes/day of ammonia and 7,000 tonnes/day of urea, the source added.

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