Saipem has announced that it has been awarded a FEED (Front End Engineering Design) contract by Sonatrach for a phosphate integrated project for fertilizer production in Algeria.
The contract was awarded through a competitive dual FEED process, which provides for the design work to be carried out by both Saipem and a competing operator. Sonatrach will then select the best technical and economic solution between the two, and proceed with the direct award of an EPC (Engineering, Procurement and Construction) contract to implement the designed project.
The dual FEED contract awarded includes front-end engineering services for the design of a new industrial complex comprising phosphate mining infrastructure in the Bled El Hadba area and process and ancillary units supporting fertilizer production in the Oued Keberit area. The scope of the work includes the development of the Annaba port for the export of products and the construction of rail sections connecting the extraction and production facilities to the main railway line.
This is the first integrated project in Algeria in the mining and fertilizer production sector. This will contribute to diversifying the Algerian economy and strengthening the country’s position in the global fertilizer market. Once operational, these plants will have the capacity to extract 10 million tons of phosphate and produce 6 million tons of fertilizer annually.
Saipem has been present in Algeria since 1968 and has built additional infrastructure for hydrocarbon refining and transportation, power plants and oil well drilling. The award of this contract marks the beginning of a new phase for Saipem in a country that has historically been strategic for the company and a customer. In addition, it confirms Saipem’s position in the integrated fertilizer project sector, through its unique combination of engineering and technical expertise in infrastructure and processing systems.
Once operational, the facilities will be capable of extracting 10 million tons of phosphates and producing 6 million tons of fertilizers annually.
