Sonatrach and Versalis Team Up to Sign MoU Agreement
Versalis and Sonatrach agree to sign MoU agreement for Petrochemical
Complex in Algeria
Algeria: Sonatrach, an Algeria based state owned hydrocarbon
company, has signed an MoU agreement with Versalis, a wholly owned subsidiary of
Eni S.p.A. The MoU agreement was signed to carry out, joint feasibility studies
for a combined petrochemical complex to be established in Algeria.
The
MoU describes in
detail about the cooperation agreement signed between Sonatrach
and Eni in November, 2016. Both the parties, under the agreement, aim at
increasing the production of hydrocarbons and other value added petrochemical
products by developing global scale petrochemical facility in Algeria.
TechSci Research depicts that the joint agreement between the two companies would strengthen
their partnership and assist Versalis to collaborate with a leading oil
companies across the region. Moreover, this would also help the companies to
increase their penetration in the growing propylene market, as it is one of the
primary petrochemical product.
According
to “Global Propylene Market By Application, By Region,
Competition Forecast and Opportunities, 2011 - 2025”,
the global propylene market is forecast to grow at a CAGR around 6% during
2016-2025, on account of growing industrialization and rising demand for demand
for eco-friendly paints across commercial and residential set ups.
Additionally, announcements of various emerging OPT plants for propylene
coupled with smooth trading practices between countries is boosting global
propylene market. Furthermore, polypropylene is projected to dominate global
propylene market, on account of increasing government regulations for reducing
greenhouse gas emissions in environment supported by tremendous growth in the
production of light commercial vehicles and packaging industries.