Saipem Selected by Sonatrach for FEED Study of Algeria’s “Phosphate Integrated” Mega-Project

The Italian engineering group Saipem has been selected by Algeria's national energy company Sonatrach to conduct a front-end engineering design (FEED) study for the country’s landmark “Phosphate Integrated” mega-project, aimed at transforming Algeria into a global fertilizer hub.

The announcement, made Thursday via an official statement, confirmed Saipem's selection through a competitive “Feed dual” tender process. This approach involves two engineering firms working in parallel to develop a full project blueprint. At the conclusion of this phase, Sonatrach will choose the most technically and economically favorable plan to move forward with the Engineering, Procurement, and Construction (EPC) contract.

The “Phosphate Integrated” project is the first of its kind in Algeria, combining large-scale phosphate mining with industrial fertilizer production. It aligns with the nation’s broader strategy to diversify its economy beyond hydrocarbons and to emerge as a key player in the international fertilizer market.

Projections indicate the future facilities will extract up to 10 million tons of phosphate annually, producing 6 million tons of fertilizer—volumes that are expected to significantly enhance Algeria's export capacity.

A controversial comeback

Saipem’s return to Algeria follows its involvement in a high-profile corruption scandal tied to Sonatrach. In 2022, an Algerian court fined the Italian firm €192 million over irregularities in the awarding of a refinery construction contract in Arzew. Former Energy Minister Chakib Khelil received a 20-year sentence in absentia, and several former Sonatrach and Saipem executives were convicted.

Despite this history, Algeria appears willing to move forward, viewing Saipem’s technical expertise as critical for national industrial ambitions.

With the “Phosphate Integrated” project, Algeria is laying the groundwork for a significant leap in its mining and fertilizer sectors. Saipem’s involvement—despite its controversial past—highlights the country’s pragmatic approach to achieving economic diversification and industrial self-sufficiency.