Sonatrach, Fertiberia to build $1bn ammonia unit

03 June 2008 07:15  [Source: ICIS news]

DUBAI (ICIS news)--Algeria’s Sonatrach and Fertiberia of Spain have announced the formation of a $1bn joint venture to build an ammonia plant in Algeria, it said on Tuesday.

The plant, which would be located in Arzew industrial zone, was expected to start operations in January 2010 and would produce 3,300 tonnes/day of ammonia, the state-owned company added in a statement.

Sonatrach and Fertiberia would form two companies to run the project – the first one would construct the plant, produce and market the product in the domestic market, while the second company would be in charge of selling ammonia to international markets.

Fertiberia will hold a 51% stake in the joint venture and Sonatrach will hold the remainder, it said.

"Algeria will control 5% of the world’s fertilizer production after completing the three projects" said Chakib Khelil Algeria’s energy minister after the companies signed the agreement.

Algeria is constructing three fertilizer plants in joint venture with Egyptian Orascom and has signed another fertilizer deal with Oman’s Suhail Bahwan Holding.

By: Abdelghani Henni
65 6780 4359

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