Algeria's state-run oil and gas company Sonatrach on Monday signed a partnership agreement with Spain's Fertiberia to establish a new an ammonia plant in the port city of Arzew, which is located 22 miles from the western Algerian city of Oran.  The cost of this project amount to US$1 billion.

Fertiberia is the Spanish market leader in the production and sales of fertilizers.

Algeria's Energy and Mines Minister Chakib Khelil attended the signature ceremony.

Situated in the industrial zone of Arzew, the new plant will have production capacity of 1.1 million tons per annum.  It will be supplied in natural gas to volume of 1.1 billion m3 per year.  

49% of the new company will be held by Sonatrach and of 51% by the Spanish group. 

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