Suhail Bahwan Group (Holding) LLC ( SBGH) has entered into a joint venture with Sonatrach of Algeria for a world scale fertilizer plant in Algeria. The shareholding in the Joint Venture Company is 51% with SBGH and 49% with SONATRACH
Sonatrach is the Algerian state owned oil and gas company with 2007 Reveunes of $ 62 Billion and is the 2nd largest exporter of LNG and LPG and the 3rd largest Natural gas exporter in the world. It employs in excess of 120,000 people and is amongst the largest oil & gas companies in the world.
The JV Company is called Sharkia El Djazairia El Omani lil Asmida (AOA) and was incorporated on March 09, 2008, in Algiers, in the presence of Dr. Chakib Khelil, Minister for Energy and the Mines of Algeria, with the signature of the statutes by Mr. Abdelhafid Feghouli, Vice President Activité Downstream on the side of Sonatrach and by Mr. Saad SUHAIL BAHWAN, Director of SBGH and Chairman of the JV Company.
The JV will establish a state of the art plant with world scale capacities of 4000 tonnes per day Ammonia and 7000 tonnes per day urea along with the associated Utilities & Offsite facilities including Sea Water Intake and Outfall, Captive Power Generation, Urea Storage, Ammonia Storage.
The site for the project is located on the coastline in the industrial area of Arzew, in western Algeria. Natural gas for the project is already committed by Sonatrach under a long term arrangement.
Work on construction of the project has already commenced under an EPC ( Engineering, procurement & Construction) Contract with a consortium of Mitsubishi Heavy Industries Ltd (MHI) of Japan and Daewoo Engineering & Construction Company(DEC)of Korea.
The plants will adopt process technologies from Haldor Topsøe A/S of Denmark, Snamprogetti S.p.A. of Italy, and Uhde Fertilizer Technology B.V. of the Netherlands. The plant will confirm to the strictest environmental norms.
The entire produce of the factory is expected to be exported globally including markets in Europe and Americas.
The project will create significant employment opportunities besides value-added exports at a global scale including to key markets in Europe and Americas.