As part of the global partnership between the two groups announced in 2017, on 11 May Sonatrach signed an agreement with Total for the development, construction and operation of a propane dehydrogenation and polypropylene production complex in the Arzew Industrial Area, Algeria.

This project, estimated at 1.4 billion dollars, will be borne by a joint company owned by Sonatrach (51%) and Total (49%). 

It will turn locally abundant propane into polypropylene, a plastic for which demand is growing exponentially. Production will primarily serve the domestic and Mediterranean market, with Total in charge of marketing the rest of the production to Europe, where the Group will use its knowledge of the market to benefit both partners.

This is the first polypropylene project and the second petrochemical project to take place in Algeria, following the CP 1k that dates back to the 1970s.

Total was assisted by Gide's Algiers office, with a team headed by Samy Laghouati, partner in charge of Gide Algeria.