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Friday, May 20, 2022
Sonatrach and the Chinese CNTIC/LPEC Group have signed an agreement for the construction of production facilities for Methyl Tert-Butyl Ether (MTBE). The contract is valued at 76 billion Dinars Equivalent and has a duration of 36 months. The project is financed by the BNA bank up to 70%.
The signing ceremony took place in the presence of the Minister of Energy and Mines, the Representative of His Excellency the Ambassador of the People’s Republic of China, the CEO of Sonatrach and the CEO of the BNA.
This Project falls within the framework of the petrochemical development program included in the medium-term investment plan of Sonatrach. The future MTBE complex will have a production capacity of 200,000 tonnes per year and will be built near the Methanol petrochemical complex (CP1Z) in Arzew.
The realization of this project will allow:
– Production of MTBE for use as an additive for the manufacture of unleaded gasoline at the level of Refineries;
– The expected annual production of 200,000 tons will avoid any import of this additive, the current cost of which is around 1100 USD/ton, the cost of importing MTBE during 2021 is 170 million USD. The surplus of this product will be exported via the port facilities of the Arzew refinery (RA1Z);
– The recovery of methanol from the CP1Z complex which will be used as feedstock for the production of MTBE;
– Development of the Company’s petrochemical assets as well as local skills in this area;
– Job creation of around 3,500 jobs during the construction phase and 200 jobs during the operation phase; and
– The mobilization of national subcontracting.
The entry into force of the contract is scheduled for the month of June 2022 and the entry into production of the new installations in May 2025.
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