MOSCOW (MRC) -- The national hydrocarbons company Sonatrach officialized the launch of its huge petrochemical plant project in Adana, Turkey, with its partner, Ronesans, at an investment cost of USD1.4 billion, that will be financed by 70% through bank loans and 30% by the project shareholders, said Plasticsnewseurope.
A statement from Sonatrach, which copy was received by Echorouk, said it signed, Thursday, through its subsidiary Sonatrach Petroleum Investment Corp. (SPIC) and the Turkish company CPEY of Ronesans in Istanbul, a series of contracts to launch engineering studies for a petrochemical complex to produce propylene and polypropylene (PP-PDH), which will be completed in the Turkish region of Seyhan in the southern province of Adana.
The statement explained that the parties had launched on August,19, 2019, a joint venture company under Turkish law, as the company’s capital is estimated at 34% for the Algerian party and 66% for the Turkish party.
The large project’s company will undertake the design, engineering, construction and utilization of a production capacity of 450,000 tons per year of polypropylene in Turkey’s Seyhan industrial zone for petrochemical development.
The project will allow Sonatrach to secure an Algerian propane gas market for a long period up to 2040 with an estimated amount of 540,000 tons per year and to generate financial returns as a 34% shareholder in the project.
As it was informed earlier, Sonatrach's petrochemicals joint venture with Total has selected Honeywell UOP's C3 Oleflex technology for its proposed 565,000 tonne/year polymer-grade propylene project in Arzew, Algeria. The catalytic dehydrogenation technology converts propane into propylene.
Propylene is a feedstock for producing polyprolypele (PP).
According to MRC's ScanPlast report, Russia's estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.
MRC