Versalis and Sonatrach eye Algerian projects

VERSALIS and Sonatrach have agreed to carry out a joint study on building an integrated petrochemicals complex in Algeria.

Versalis, the chemicals arm of Italian oil major Eni, signed the memorandum of understanding with Algeria’s state energy firm Sonatrach yesterday. The joint feasibility study extends a cooperation agreement signed between Eni and Sonatrach last November, and will look at using “one or a few” world-scale industrial petrochemical facilities in Algeria to add value to the country’s hydrocarbon resources.

Versalis – which currently produces 6m t/y of chemicals products including plastics and rubbers – said in a press statement that the deal is an opportunity to offer its industrial experience in managing large petrochemical plants, and license its proprietary technologies.

The November agreement will see a long-term cooperation in upstream energy, gas supply, and development of renewable energy, between the two companies.

Eni has worked in Algeria since 1981, and bought 9.7 bcm of natural gas from the country last year, equivalent to 16% of Italian gas demand.