Sonatrach, Rönesans Holding Confirm Final Investment for Polypropylene Project in Turkey

On Monday, Sonatrach, Algeria’s state-owned hydrocarbon leader, and its Turkish partner Rönesans Holding officially announced their Final Investment Decision (FID) for a significant Propane Dehydrogenation and Polypropylene Production (PDHPP) project in Turkey. The announcement was made at a high-profile event held at Sonatrach’s headquarters in Algiers, attended by Sonatrach CEO Rachid Hachichi and Rönesans Holding CEO Erman Ilicak, as detailed in a statement from Sonatrach.

The PDHPP project, set to be developed in the Ceyhan industrial zone in Adana, Turkey, will be a major petrochemical facility featuring a propane dehydrogenation unit (PDH), a polypropylene production unit (PP), and shared utility and storage facilities. Sonatrach will own a 34% stake in the project through its international subsidiary, Sonatrach Petroleum Investment Corporation (SPIC BV), while Rönesans Holding will retain a 66% share. As part of the agreement, Sonatrach will provide propane feedstock for the facility under a long-term contract, with pricing linked to global market rates.

The PDHPP project aligns with Sonatrach’s strategic goals of expanding internationally, diversifying its investments, and enhancing the value of hydrocarbons, particularly within the petrochemical sector. The company highlighted that the project will play a crucial role in advancing the economic development of both Algeria and Turkey. By converting hydrocarbons into high-value-added products, the complex is expected to bolster Sonatrach’s presence in the global petrochemical market and strengthen its position as a key player in the industry.

The development of this large-scale petrochemical complex marks a significant milestone for both Sonatrach and Rönesans Holding. The facility will not only enhance the production capacity for polypropylene but also contribute to the economic growth of the region by creating new opportunities and driving industrial progress. The collaboration between the two companies underscores their commitment to leveraging their respective strengths and resources to achieve mutual goals in the global petrochemical market.

Overall, the PDHPP project represents a major investment in Turkey’s industrial infrastructure and aligns with broader regional and international objectives to advance the petrochemical sector. The successful execution of this project will highlight the strategic importance of international partnerships and investments in driving innovation and growth in the global hydrocarbon and petrochemical industries.

Sonatrach, Algeria’s state-owned national oil company, was established in 1963 and has grown to become Africa's largest corporation, encompassing 154 subsidiaries. Often recognized as the leading African oil "major," Sonatrach ranked as the world's seventh largest gas company in 2021.  Sonatrach is the 12th largest oil consortium globally, with 154 subsidiaries managing the entire oil value chain, including upstream, midstream, and downstream operations.