Saipem has signed a Limited Notice to Proceed (LNTP) worth approximately €500 million with Sonatrach for Phase 1 of the Projet Phosphates Intégré (PPI) in Algeria.
The LNTP, described as a “Protocole d’Accord”, follows a letter of intent under which Sonatrach selected Saipem as EPC contractor for the project’s first phase.
The planned industrial complex will include phosphate mining infrastructure in the Bled El Hadba area, process units and auxiliary facilities for fertilizer production in the Oued El-Kebrit area, together with related logistics and service infrastructure.
The LNTP allows Saipem to begin preliminary activities ahead of the negotiation and finalisation of the full EPC contract. The work includes completion of FEED, detailed engineering, procurement of long-lead items, and initial project mobilisation and organisation activities.
The full EPC contract will be based on a framework under which Saipem and Sonatrach will share risks and rewards during execution, including the LNTP period.
Saipem also plans to involve Algerian companies as construction partners, using their knowledge of the local environment while supporting the development of local skills and industrial capabilities.
The agreement follows a competitive FEED contract awarded to Saipem in June 2025. The company said its selection for the project marks its return to Algeria and the start of a new phase of cooperation with Sonatrach.
Once operational, the project is expected to contribute to Algeria’s agricultural and industrial value chains and strengthen the country’s position in the global fertilizer market.
