Sorfert Algerie Fertiliser Complex, Arzew, Algeria

Sorfert Algerie is building a 1.2mtpa ammonia/granulated urea plant in the Arzew industrial zone, Algeria. A second ammonia plant with a capacity of 800,000tpa is also being built.

It is said that once complete, the plant will account for one of the largest volumes of fertiliser exports to the Mediterranean. The Arzew industrial zone is situated near three major Algerian ports on the Mediterranean coast.

The ammonia/granulated urea plant is due to become operational at the end of 2010, with the second ammonia plant coming on-stream some six months later. Investment costs are put at $2bn. Domestic sources of natural gas will be used as feedstock.

Sorfert Algeria is a joint venture between Orascom Construction Industries (OCI) and the Algerian state-owned oil and gas company Sonatrach.

Design, development and construction agreement

During the middle of 2007 Sorfert Algerie signed an agreement with Germany's Uhde GmbH to design, develop and build the world-scale fertiliser complex. At the same time Orascom Construction Industries Algeria (OCI) said that it would be carrying out all onshore works for the new complex.

At the start of September 2008 Uhde announced that it had been commissioned to provide its process technology and provide engineering and supply services to the Sorfert Algerie fertiliser complex.

Process technology

The ammonia plant will use Uhdes' proprietary ammonia process technology. At the same time, a synthesis process for the urea plant will be provided by Netherlands-based Stamicarbon. The licence for the fluid-bed urea granulation process will be supplied by Uhde Fertiliser Technology, who took over the exclusive rights for the technology from Yara Fertiliser Technology during 2005.

Uhde added that all the selected processes are "particularly environmentally friendly and meet stringent Algerian and European standards."

Legal advice

In April 2008 global law firm White & Case LLP announced that it was advising Sorfert Algerie in relation to the $2bn financing for the construction of a nitrogen-based fertiliser plant. The financing agreement, which will run for 15 years, includes a grace period of approximately three years that covers the construction period.

Banque Exterieure d'Algerie was the arranger for the financing package along with Banque Nationale d'Algerie, CENP Banque, Banque de Development Local and Credit Populaire d'Algerie.

White & Case also advised Sorfert in connection with the engineering, procurement and construction (EPC) contract, which was entered into with Uhde and OCI Algeria.

Supply of vacuum condenser packages

At the start of 2008, UK-based Wellman Hunt-Graham was awarded a contract by Uhde to supply five sets of vacuum condenser packages to Sorfert. Delivery is scheduled in 2009.

Background

Global law firm White & Case said: "We are seeing increasing levels of industrial investment in North Africa. These countries have abundant resources and given their coastal locations, are in a good position to export manufactured goods. These factors, combined with the region's strong economic growth, make these countries attractive prospects for investors."