Page 13 - DMEA Week 41 2021

DMEA FUELS DMEA

Sahara to inject $1bn into LPG

vessels, infrastructure in Africa

AFRICA ENERGY and infrastructure conglomerate include Nigeria, Senegal, Ghana, Cote d’Ivoire,
Sahara Group plans to invest over $1bn to Tanzania and Zambia, along with five others in
enhance access to LPG in Africa and emerging the preliminary stage.
economies in a bid to boost energy transition Shonubi noted that Africa had become reliant
on the continent. Through its subsidiary WAGL on imports to meet its LPG demand as a result
Energy Limited, Sahara is already working of low crude oil refining capacity and absence of
towards investing $1bn to ramp up its LPG fleet adequate wet gas being processed.
and terminal infrastructure over the next five “Africa’s refining capacity of 3,343,000 barrels
years, said executive director Temitope Shonubi. per day (bpd) is limited to just 20 countries; uti-
In addition to the vessel fleet, Sahara is in the lisation rates have fallen from about 75% in 2010
process of building over 120,000 metric tonnes of to 55% in 2020. Only six African nations have
LPG storage in eleven countries, he said. combined LPG storage capacity greater than
The countries earmarked for storage tanks 50,000MT,” he said.™

PETROCHEMICALS

Sonatrach, Renaissance sign

deals on joint polypropylene plant

MIDDLE EAST ALGERIA’S state oil firm Sonatrach and the company for the project two years ago and have
Turkish firm Renaissance (Rönesans Holding) already carried feasibility studies. They are now
have signed three contracts related to the devel- hoping to begin construction in the near future
opment of a polypropylene production facility in and aim to finish the plant in 2025.
the Turkish port of Ceyhan. Renaissance has a stake of 66% in the joint
In a statement, Sonatrach said the deals company, while Sonatrach owns the remaining
would support the construction of the facility, 34%. The Algerian firm has agreed to supply the
which will turn out polypropylene for use by plant with feedstock – namely, propane – for
manufacturers of automobiles, textiles and other polypropylene production under a long-term
goods. contract linked to international prices. This con-
The cost of building the new plant is slated to tract provides for the delivery of 550,000 tonnes
reach $1.4-1.7bn, and 70% of project costs will per year (tpy) of propane until 2040.
be financed with loans from international banks. The new facility is slated to turn out 450,000
One of the contracts between the companies tpy of polypropylene. As such, it will allow Tur-
concerns engineering, equipment, construc- key to reduce polypropylene imports by 20%
tion and commissioning work on the project. while also tripling domestic production levels.
Another contract concerns periodic mainte- The plant will rely on renewable energy
nance services for materials and equipment, sources, primarily hydroelectric power plants
while a third is dedicated to sales and marketing (HPPs), for 80% of its electricity consumption.
services. According to Turkish press reports, it will also
Sonatrach and Renaissance set up a joint turn out hydrogen.™

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