Saipem wins front-end engineering contract for phosphate project in Algeria

Milan-based engineering and construction firm Saipem has been awarded a Front-End Engineering Design (FEED) contract by Algeria’s state-owned energy company Sonatrach for an integrated phosphate and fertilizer production project in Algeria. The award was made through a dual FEED process, with Sonatrach set to select one of two competing designs for final execution.

The project, known as the Phosphate Integrated project, involves the development of a new industrial complex that includes phosphate mining infrastructure in the Bled El Hadba area and fertilizer production units in Oued Keberit. The contract also covers the design of ancillary infrastructure, including the upgrade of Annaba port and the construction of railway links between extraction and production sites.

Once operational, the facilities are expected to extract up to 10 million tonnes of phosphate and produce 6 million tonnes of fertilizers annually. According to Sonatrach, this marks the first integrated mining and fertilizer production project in Algeria and is aimed at diversifying the national economy while enhancing Algeria’s global position in the fertilizer market.

The FEED contract is intended to lead to a direct award of the Engineering, Procurement and Construction (EPC) contract based on the selected design. Saipem’s role in the project reinforces its longstanding presence in Algeria, where it has been active since 1968 in hydrocarbons, power generation, and drilling infrastructure.

Saipem’s participation in the phosphate project also aligns with its broader strategic shift towards sustainable industrial development and its positioning in the fertilizer sector. The company, listed on the Milan Stock Exchange, operates globally with a workforce of 30,000 across more than 50 countries.