Total said on Tuesday it would invest $1.5 billion in a petrochemical project in Arzew, Algeria, after it agreed on Tuesday to develop the $3 billion project with Algeria's oil and gas group Sonatrach. The agreement is for the development of a 1.4 million-tonne-per year cracking unit that will be fuelled with Algerian gas, Total said in a statement.
"The French share is 51 percent at the moment... a little more than $1.5 billion," Total Chief Executive Christophe de Margerie said at the signing of the agreement in Algiers. The ethane cracker will produce 1.1 million tonnes of ethylene per year that will be processed in 800,000 tonnes of polythene and 550,000 tonnes of monoethylene glycol, Total said.
The products will mainly be for exports, although a share will be sold in the domestic market. The agreement follows on from a memorandum of understanding signed earlier this year between Total and the Sonatrach.
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