Italian engineering firm Saipem has been awarded a front-end engineering design (FEED) contract by Algeria’s state energy company Sonatrach for a major phosphate production complex, signaling a significant move to diversify the country’s economy and boost its global fertilizer exports.

The contract was awarded through a competitive dual FEED process, which tasks both Saipem and a competing operator with developing separate designs for the project. Sonatrach will then evaluate both proposals and select the most technically and economically viable option for execution. The selected design will be developed into a full EPC (Engineering, Procurement, and Construction) contract to be awarded directly.

Project Scope and Infrastructure

The integrated phosphate project involves the development of a new industrial complex that spans several regions. It includes:

• Mining infrastructure in the Bled El Hadba area

• Fertilizer production and support units in Oued Keberit

• Upgrades to the port of Annaba to facilitate exports

• Construction of new railway links to connect extraction and production sites to Algeria’s main rail network

Once operational, the project is expected to extract 10 million tons of phosphate and produce 6 million tons of fertilizers annually, significantly enhancing Algeria’s role in the global fertilizer market.

Strategic Significance for Algeria and Saipem

The project aligns with Algeria’s broader strategy to diversify its economy beyond hydrocarbons by strengthening its industrial base and tapping into global demand for agricultural inputs. For Saipem, the award marks a renewed phase of cooperation in a country where it has been active since 1968.

“This contract reinforces Saipem’s long-standing relationship with Sonatrach and Algeria,” the company said in a statement, adding that it reflects Saipem’s commitment to supporting the energy transition and sustainable development.

Saipem brings decades of experience in complex infrastructure projects, including hydrocarbon processing, power generation, and logistics. With a workforce of around 30,000 employees from over 130 nationalities, the company positions itself as a global leader in energy and infrastructure services.

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