Development of petroleum and chemical industries in the North African sub-region* : Volume I

y _NftAT

UNIIED NATIONS

ECONOMIC and SOCIAL COUNCIL

Distr.

RESTRICTED

E/CN.I4/INR/156

9 March 1971 ENGLISH

Original : FRENCH

tllllll II III iw 11111 in inn in in 111 urn in mil in in miiiiin

ECONOMIC COMMISSION FOR AFRICA

DEVELOPMENT OP PETROLEUM AND CHEMICAL INDUSTRIES

IN THE NORTH AFRICAN SUB-REGION*

Volume I BASIC DATA

^

Report prepared by the Bureau d'Etudes Industrielles et de Cooperation de

l'Institut Francaisde Petrole, under the French Goverrmeirt !s bilateral

assistance programme.

M71-331

E/CN.14/INR/156

BASIC DATA

Page Petroleum resources in the sub-region 1

The Refinery industry 3

Chemical and petrochemical industries 12

Technico-economic features 23

e/cn.'14/ihr/i56

PETROLEUM RESOURCES IN THE SUB-REGION

A Table indicating the sub-region's resources has been drawn-up on the basis of the data contained in the Etude Economique des possibilites ■

petrolieres de 1'Afrique du Nord * (Table I).^:i The 1967 foreign trade; balance shows: "' ■ ' '

Two world exporters - Algeria (33 million tonslwere exported in 1966) and Libya (CO million tons were exported in 1967')*."

The existence of small gaps to be bridged in the UAR, Morocco and

Sudan. . . ;

- The recuperable reserves of both crude petroleum and natural gas make

it possible to forecast that the entire sub-region will remain a net exporter in the coming years and that apart from Morocco and Sudan, probably all countries will meet their own needs.

IFP Report 15,725 made in April 1968 for EGA.

,r TABLEI PETROLEUMRESOURCESINTHENORTHAFRICANSUB-REGION

O ro Countreproduction1967RecuperablereservesForeignTrade Balance1967*: CrudePetroleumNaturalgas

(million tons) (million tons) Crude Petroleum Natural gas (million tons) (■million tons) (milldon tons)

UAH LIBYA, ALGERIA TUNISIA LOROCCO SUDAN -net +net

exporter importer

6

85

36 1 0

.2 -75 .1

317 (1966)

2,190

8.4

11

240about90,000 2,500420,000 about8002,300,000 38

0.985-

100 500-550

+ 2.2 (1966) f - 80 | - 33.4 (1966) (-1,778 10m3gas)

1.08 +1.1 +0.7

A

E/CM.14/INR/156

! Page 3

THE REFINERY INDUSTRY

I. SPECIAL FEATURES ABOUT THE REFINING-OF PETROLEUM . PRODUCTS, ■ Page

IN ■ JRTH AFRICA

/""*^7- .J. 1 Magnitude - Raw materials ' . ' 4

'1,2 Integration - National characteristics . ,.. . 4

II. "REFINERY POSITION BY COUNTRY II.V

II.2 II.3 II.4 II. 5.

II.6

* Morocco Algeria:

Tunisia

■. Libya ' UAR' '

Sudan ■. ■ . . . '

III, FEATURES AN3-StTg'-AftY OF THE REFINERY POSITION IN NORTH.

■ ■■■ ■ AFRICA ... . , ■ ' . . .. .

5

.6 6 7 7

E/CN-14/IKH/-156

Page 4

THE REFINERY INDUSTRY

I. SPECIAL FEATURES ABOUT THE REFINING OF PETROLEUM PRODUCTS IN NORTH AFRIC '•

1.1 Magnitude - Raw materials

ountry's refinery industry recpiires huge investments and constitutes one of the major industries in that it helps to estab lish a basic autonomy for each country; that of petroleum productc.

...part from the refineries on the oil-fields, the sizes of the refine--

r'.es in North Africa vary between 400,000 tons (Port Brega in Libya) f.nr. 4,500,000 tons (El Nasr and Sues in the UAR); but if certain

err.ensions were envisaged, they would at least reach a 1,000,000 tons s.ud an average of 2,000,000 tons. These sizes which are" so far con

siderable will enable Africa's present position to be compared favourably with certain developed countries.

Three of the six countries - Algeria, Libya and the UAR - are major producers of crude petroleum. To date, the UAH's production has shown deficits but the newly exploited deposits will soon reverse this position. The production situation of Algeria and Libya which

are the two major exporters of crude petroleum can only be marked by surplus over the needs.

Cf these thre.e countries, only Libya, which is a new producer has not established a major refinery industry. The UAR has gradually covered its needs; similarly, Algeria whose first refinery at Algiers has a capacity of 2,500*000 tons is far exceeding its demand for petroleum products.

The three otljer countries have in recent years provided for major refineries, which, although supplied by imported crude petroleum, appear to be profitable and cover the total demand for petroleum products.

- 2 Integration -- Ihd ional characteristics >

Integration and concentration could only exist in related producti ons such as petrochemical production. In the UAR where the petrochemical production is beginning, this integration is effective and might be envisaged, in the other countries expected to be potential producers of petrochemical products.

E/CN.14/INR/156 Page"5

The dominant feature of the refinery industry is still that of autonomy ;for each producing country. No country.plans to rely on its neighbours■for its petroleum products but rather plans to keep

pace with its local demand. As the investments required are high,

a<considerable participation by the government or State-owned

petroleum companies will most often be needed in the establishment and the management of the refineries. This growing-hold- and ^control of governments are also exerted on the prospecting, production and the hauling of crude petroleum and might be exercised on related refinery industries, such as the'petrochemical industry.

II. , REFINERY SITUATION BY COUNTRY -• -.-.-;

II. 1 Morocco . ...

. IVo refineries are operational in Morocco; . - -.: .

- the SAMIR refinery (Societe Anonyme Marocaine Italienneide Raffinage) at Mohammedia can process 1,3000,000 of crude"

. petroleum per annum in an atmospheric distillation unit of

26,000 barrels a day. . -:-,-_

. This-refinery has other major units such as a platforming, unit . that could process 6,500 barrels of gasoline a day andari:unifining

unit (pre-processing of gasoline) of the same capacity. This refinery could be extended in the coming years. The atmospheric distillation capacity of crude petroleum amounts to 43,000 barrels

per day. ' ... ' ■

: - the refinery of the Societe Cherifienne des .Petroles (SCP)

at SidiKacem can process 400,000 tons of crude petroleum per •

■ annum'in an atmospheric distillation unit of 8.000 barrels per annum. This refinery with a daily capacity of 4,0.00 barrels a day Has a catalytic cracking unit that could produce"gasoline

with a high index of octane. ' :

Morocco's imports of petroleum products have been about 100,000 - tons per annum since 1964 whereas exports do not r'each this total.

Local production from the two refineries approximately meets Morocco's needs in petroleum products: 800,000 tons by'"the SAMIR and 250,000 tons by the SCP in 1965 i.e. at a growth rate of~iI5t

over 60 per cent. * - :

As-local production of crude petroleum is low (about'100,000 tons per

annum) the. two Moroccan-refineries are supplied by'foreign crudes

whose approximate break-down in recent years was: '

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Page 6

30 to 35 pei* cent of -light crudes (mainly Algerian)

15 to 20 per cent of average density crudes from the

Middle East (mainly from the crude of Arabia)

50 per cent of average density crudes and more sulphurous crudes from the.USSR.

II.2 Algeria

A refinery at the Hassi Messaoud oil-field, whose production feeds the petroleum plants, can process 200,000 tons of crude petroleum

per annumo

The refinery currently operating in-Algiers with capital "jointly

subscribed by Shell, CFP, Total , SAHM and SONATRACH (Societe Nationale Algerienne) can process at its main plants 2,500,000

tons of crude petroleum in an atmospheric distillation unit of 42,000 barrels per annum. Two other units have a daily capacity

of 16,000 barrels, a platforming for processing gasoline and an

unifining for the pre-processing of this gasoline.

The refinery processes at present only 1,500,000 tone of crude petroleum, i.e. at 60 per cent of its capacity: 900,000 tone of petroleum products are consumed locally and 6OO7OOO tons are exported mainly to France. The cargo is crude petroleum from

Hassi Messaoud (80 to 85 per cent) and from the condensate at Hassi R'Mel (15 to 20 per cent). " 1

II.3 Tunisia

A single refinery at Bizerta which has been operating since

December, 1963 processes crude petroleum in Tunisia. Its '

i atmospheric distillation capacity of 22,500 bexrsl3 a, day helps ;

' . ,. to process 1,000,000 tons of petrol per -annum., This- refinery in I

Bizerta has two unite with a daily capacity of 3:3OO barrels; ! a platforming for processing, petroleum and an unifining for the r

pre-processing of this gasoline- . ..

■■■■ I

j The refinery has at. present a..growth rate of about 85 per cent !;

i including 15 per cent for exports. A projected extension will v

j ■ 1 apparently increase the capacity from 1,000,000 -co 1.500.000 jj

! tons. Hitherto, the crudo petroleum processed wc?e mainly £

i ' . imported; 30 to'40 per cent of light erode density from Libya; j;

40 - 50 per cent of medium density crude from Iran, 20 per cent i of heavy crude from Kuwait and others. Local production of crude

I .petroleum is reaching a very high level in relation to local needs

i and it appears that the future-supplies from the refinery will to

! radically changed*

Page 7

Apart from the refinery at'the Dahra oil-field whose atmospheric distillation unit can process up to 100,000 tons of crude petroleum per annum, Libya has at Port Brega a single sizable refinery that can process 400,000 tons of crude petroleum per annum.

This refinery, which recently began operations, has an atmospheric distillation capacity of 9,000 barrels a day and a powerforming unit of 2,000 barrels a day for processing gasoline. The growth rate of the refinery is still relatively low but it is "expected through its development to cover almost all the demands, since the petrol supplies will be met by the locally produced light crudes.

II.5 UAR

Despite the temporary drop in the production of the refineries in the UAR, an up-to-date account similar to that already existing ,in 1965 can reasonably be made on the operating capacities. At that

time, the UAR had three refineries in operation:

- The Alexandria refinery, owned by the Alexandria Petroleum

. / Company, can.process 1,400,000 tons of crude petroleum per annum, - with an atmospheric distillation unit of 30,000-barrels a day

and catalytic reforming of 2,200 barrels a day. This refinery which also marks the beginning of petrochemical■productions is due to bo extended, thus making it possible to process 2,500,000

tons of crude petroleum. ■ ■

- The El Nasr Oil-fields company at Suez can process 4f500,000 tons of crude petroleum per annum with an atmospheric distilla tion capacity of 95*000 barrels a day. The other important units of. this refinery are a thermal cracking of 3,000 barrels a day, a thermal reforming of 2-800-barrels a day and a visbreaking of 9f000 barrels a day.

- The refinery of the Suez Oil Processing Company, also at Suez, can process 3,000,000 tons of crude petroleum per annum with an atmospheric distillation unit of 64,000 barrels a day. This refinery has many other units especially a platforming unit of 10,000 barrels a day and a thermal reforming of 3,500 a day for processing gasoline, an unifining of 21,000 barrels a day for the pre-processing of gasoline, a cracking of 3,500 barrels a day and a visbreaking of 4j200 barrels a day.

These refineries will be operating very soon at production rates close to 90 per cent, thereby making it possible to meet the local demand for petroleum products. Crude petroleum supplies will move favourably towards the consumption of locally produced heavy and medium crudes. Although the quantity of the latter is already high

E/cN.H/INR/15.6

Page 8

in relation to exports, local consumption in the refineries attained only 55 per cent of the total, namely about 4,500',000 tons in 1965. The "breakdown of the remaining 45 per cent is 10 per cent of light Libya*1 crude, 10 per cent of heavy crude from Kuwait, 10 per cent of medium Russian crude and 15. per.cent of

medium density crude,from the Middle East (>.ainly Arabia and Iraq).

II.6 Sudan

A single.refinery is operating in Sudan: the refinery at Port Sudan can'process up to 90,000 tons of crude petroleum. This refinery which began operations in 1966 and is owned by the

International Petroleum Companies (Shell-BP) has an atmospheric

distillation unit with 20,000 barrels a day and & catalytic

reforming unit which i3 currently out of operation (1,400 barrels

a day). This refinery has a production rate close to 85 per cent

■ and exports some petroleum products (mainly light and heavy residues). Petrol supplies are assured through crudeG from the Persian Gulf (heavy and medium from'Aglia Jari in Iran). ^

III. FEATURES AND SUMMARY OF THE REFINERY..^POSITION IN'NORTH .AFRICA

. . Tables 2 and 3 :below Bunnnarize the capacities of the main refinery units operating in North Africa since 1965 arid give for each

country the present production rates, the percentage of consumption mot by the capacitiss in 1965 and the main crude petroleum processed f.t these refineries.

E/gN,.14/INR/156

Page 9

TABLE 2 ■

FEATURES OP ,THE NORTH AFRICAN REFINERIES

Site

Capacity of the ■ distillation, unit

.(in tons)'

Other major units and daily capacities in •*■■

barrels v . .•

MOROCCO Mohammedia

. Sidi-Kacem

1,300,000

400,000

Platforming:

Unifining:

6^00 6,500 Catalytic -cracking: -4,500

ALGERIA' ;. ...

Haasi-Messaoud Algiers

200,000

2,500,000 Platfcrming:

Unifining:

16,000 16-yOOO TUNISIA

Bizerta 1,000,000 Platforming:

Unifining:

3,300 3,300 LIBYA

Dahra ' Port Brega

100,000

400,000 Powerforming: 2,000 UAR

Alexandria

Suez (El Nasr)

Suez (Suez Co.)

1,400,000 4,500,000

3,000,000

Catalytic reforming: 2,200 Thermal cracking: 3,000 Thermal reforming: 2,800 Visbreaking: 9,000 Thermal reforming: 3,500 Unifining: 21,000

Cracking: 3,500

Visbreaking: 14,200 SUDAN

Port Sudan 300,000

Page 10

TABLE 3

REFINING IN EACH NORTH AFRICAN COUNTRY

Estimation of the total Meeting local consumption Major crude petroleum growth rate of the needs/capacity in 1965 processed (in 1965)

refineries in 1966

MOROCCO

12%

USSR

^ Algeria

20% Arabia

Heavy Light Medium

.ALGERIA

44/

b . Algeria light

TUNISIA

85/* 67% 4O-5O56 Iran

3O-4Cfo Libya 20/ Kuwait

Medium Light Heavy

LIBYA (1966)

100%- Libya light

UAR

555^ Egypt Heavy

J\5% Middle East Medium 1.0^ USSR Heavy 10fo Kuwait Heavy 10fo Libya Light

SUDAN

!00/0 Persian Gulf Heavy

Medium

e/cn.u/inr/156

Page 11

CHEMICAL' AND'FETiroCHpirCKL- INDUSTRIES "

■•*-■=!-■ -' -/■'-Page

I. :FERTILIZER PRODUCTION CAPACITIES

1.1 Special features about fertilizer'production "'■'

in North Africa ' k ' ' * 12

1.2 Nitrogenous fertilizer production capacities ..." .*'"'."."' 12

1.3 Phosphatic fertilizer production capacities *■: ' • " 15

II. PETROCHH-nCAL PRODUCTION CAPACITIES ' ' ' ...._. ;"-:(" 19

III./ CHEMICAL PRODUCTION CAPACITIES ' ' ' ';-'<: ' ' ';; ; '

111.1 Mineral 'acids and ammonia' ;' ' ' '/' . ' ^9

111.2 'Chlorine and soda ' / '. "; ' ;-'.■-',.■- 20

E/CN.14/INR/156

Page .12- ■■■.,. ■

CHEMICAL AND PETROCHEMICAL INDUSTRIES

I. FERTILIZER PRODUCTION CAPACITIES

1.1 Special features ahout fertilizer production in North Africa

■ The various North African countries (except Sudan) are endowed with

abundant sjnd cheap raw materials. As regards nitrogenous fertili zers, natural gas constitutes the key to the establishment of complexes in Algeria and soon in Libya and the UAR. Similarly, phosphatic deposits in Morocco,--Tunisia and-UAR will directly-in fluence the establishment of phosphatic fertilizer .complexes in these countries.

These abundant raw materials do in themselves justify the magnitude and size of the fertilizer complexes which have recently been > ' established or are to be set up by 1975* Formerly exporters of raw

materials (phosphates from Morocco and Tunisia, liquefied natural gas from Algeria), the countries are now turning to exporting more

sophisticated products: phosphatic fertilizers, ammonia and nitro

genous fertilizers. ... .... ....

As in the other producer countries, the fertilizer industry is a . concentrated industry requiring huge-investments and needs in'goods and services. It is usually the governments or the State Corporations that establish these complexes near the mining sites of the raw , materials or near the ports of shipment. These complexes therefore

have a whole chain of the production, even fertilizers, i.e.:

. - The production of sulphuric acid, phosphoric acid for that of phosphatic fertilizers.

- The production of ammonia, nitric acid, for that of nitrogenous fertilizers.

At times, these productions are even integrated, at least as regards companies, into the utilization and development of the raw materials,

1.2 Nitrogenous fertilizer produotion capaoities

Although huge production capacities are being constructed (Arzaw in Algeria and soon Gabes in Tunisia) and apart from the projected

production of the Safi complex in Morocco (150,000 tons of diammonium phosphate per annum) only the UAR at present produces nitrogenous

fertilizers.

\

E/CN.H/lNR/156

Page 13

The units; of production are two:»

- The Nasr d'Bngrais et d'Industries Chimi'ques at Suez has

production capacities of 270,000 tonsjof calcium[ nitrate and

100,OO'p tons of ammonium sulphate'per arlnum. For the nitro genous; content! of about 15.5 per cent iri the calcium nitrate and 21^per cent of ammonium sulphate,' the total production

capacity in tons of nitrogen i is aboutj 63*000 tons per annum.

A greater capacity of ammonium has beenjprovided f,or: 85,OOOtons per annum",: the', source of the hydrogen required be'ing the gas

from the Nasr Refinery at Suez. ' ; -:

> \ i :?;.}■

- Egyptian Chemibal Industries 'JKima" at Aswan has a; production

capacity of 456,000 tons of calcium ammonium nitraite_.per annum.

For a present rii^rogenous con^ent.bf about 20.5-^pejr 'cent ■ in-the calcium nitrate (which may varyi.up'' to r33.5 per cent -if 'rthe-';cal- cium content decreases) the production! capacity-' iri tons of nitro

gen wllllbe about 92,000 tons^ per- annumv A greatjer capacity

of ammonia has been providedjjfor:.' 138-tQOO tons;"pejr^annum, the

source^ of the hydrogen neededlibeirig th'e lelectrolysis of water.

In 1965* |hese two refineries operated at ah overall broduction

rate of about 90 P©r cent to supply the local market with nitro genous fertilizers. The needs of the market were however met

through imports. % _ .; .. f. :; ■

The following Table summarizes thjeVmain features, of the two nitro genous fertilizer''Complexes in the UAR. 'j ■; ,

■

i-

it •

3 S ;

i I

TABLE4 Company

Ei Ivasr d'Engrais

chimiques

NITROGENOUS Site' etd'industries' Suez

FERTILIZERPRODUCTION(

(in thousands of

CAPACITIESIN

tons)

Calcium., ammonium.-Calcium. Ammonianitratenitrate ■;-..270

THE UAR '--'V V

-:' Ammonium. sulphate.. ■'\■i.■'•■■•■':■'.•■' ■100.;

■.7 Total fe.rtil: ■370

•■ - '"'

zersr

O*\ Estimated total...I- nitrogenous■ ■fertilizers... EgyptianChemicalIndustries "Kima"Aswan138■37-Q: Totalnitrogenous fertilizersin19652233*0.i2270■•■■100370

155 ,

E/CN.14/INR/156

Page 15

1.3 Phos'phatic fertilizer production capacities

In 1965, there were four producer countries, namely Morocco, Algeria,

Tunisia and the UAR. These countries have contemplated at varying

degrees major producing complexes since that date. For instance, the Safi complex due to operate in 1975 was grouped among the .units then

in operation.

The units of production "by country are as follows:

Morocco . ■ =

The production capacity of the Occidental Petroleum Corporation at Ain Sebaa, Kenitra, Safi is 1.50,000 tons of simple superphosphate

and 100,000 tons of hyperphosphate per annum. This total capacity

corresponds to about 50,000 tons of phosphoric anhydride P 0 for

the real contents of 16 per cent in the simple superphos- • ^

phate and 25 per cent in the hyperphosphate.

The production capacity of the Office Cherifien des phosphates began

recently at the Safi complex. The latter has two likely trends corresponding to a production of triple superphosphate varying bet-

- ween 200,000 and 400,000 tons per annum and the production of diam

monium phosphate varying between 150,000 and 300,000 tons. An

average hypothesis which takes into account the country's lack of

ammonia was adopted: 300,000 tons of triple superphosphate, 200,000 tons of diammonium phosphate. In terms of the real contents in P 0

(45 per cent in the triple superphosphate, 46 per cent in the 2 ^

; diammonium .phosphate) the capacity." in. P205.-phosphoric anhydride is approximately 225,000 tons. The present production level of this : complex is low although the production of the Occidental Petroleum

Corporation virtually met the local needs in ^%y (since hyperphos

phate products were exported). ■

In Algeria

The only producing company is the SNAPCE (Societe Nationale Algerien- ne des Produits Ch'imiques et d'Engrais). This company has at three sites capacities for simple superphosphate. ' '.

1

.60,000 tons per annum at Senia

40,000 tons per: annum at Annaba

30,000 tons per annum at El Harrach

E/CN.14/INR/156

Page 16

This total capacity of.130,000 tons,corresponds to about 21,000 tons of PpOt for a real content of 16' per cent"in" the simple super phosphate. The total production.rate was about 70 per cent and the local production covered almost half the country's needs in PpOc.

... . ■ r •■

In Tunisia . ....

The producing companies are more numerous considering that there are four of equal importance: • ■

- The STEP (Societe Tunisienne d'Bngrais Pulverises)"at Sfax with

a production capacity-vOf 130,000 tons of hyperphosphate per annum

is geared towards exports (particularly to Vietnam). The 70 P©**

■ ■ cent production rate is dropping. ' For a 25 per cent in-PgOc, the capacity in phosphoric anhydride is about 33,000-tons per annum.

- The SAPCE in Tunis with a capacity of 60,000 tons per annum

produces only simple superphosphate. The production rate of this unit which is about 70 per cent aims at meeting local needs in

■'■ ?29S". . T^e corresponding capacity in P2O5 is approximately 10,000

1 tons per annum. ■ ■ • ■

. .. . . I ■

- The NPK Company (a Swedish concern) at Sfax with a capacity of

150,000.tons per annum, produces only triple superphosphate which corresponds to about 168,000 tons of P2O5 per annum. In 1966, the first year of operation, the production rate reached 90 Per cent in relation to local needs and exports. '

- The SIAPE (Societe Industrielle d'Acide Phosphorique et d'Engrais)

at Sfax with a capacity of 100,000 tons per annum produces triple

superphosphate (already increased to 200,000 tons per annum in .. ; 1,966.) this corresponds to about 45»OOO tons of P2O5 per annum.

As far back as 1966, the production rate reached 70 per cent in relation to local needs and exports.

In the UAR

The Abou Zaabal Fertilizer and Chemical Company has a production capacity of 100,000 tons of simple superphosphate per annum at Abou Zaabal. This quantity amounts to 4-0,000 tons of sulphuric acid per annum. Actually, the production capacity of phosphatic fertilizers can now reach 26,000 tons per annum; only inadequate quantity of sulphuric acid justifies a smaller capacity.

E/CN.14/INR/156

. * Page 17

The Societe Financiere et Industrielle d'Bgypte has a production capacity of 120,000 tons of simple phosphate per annum. The production capacity of sulphuric acid reaches 100,000 tons per annum and like the sbove-inentioned complex, inadequate quantity of sulphuric acid prevents the phosphatic fertilizer capacity

from attain?.!^ a greater tonnage (300,000 tons of simple super phosphate pel'- annum).

For real contents of 15 per cent in phosphoric anhydride 25 total capacity in P2OC is about 33,000 tons. Production from these two complexes geared to local consumption covers-about fifty per cent of these needs.

The Table below summarizes the main features of the phosphatic fertilizer complexes operating in North Africa during 1965-1966.

TABLE5 PHOSPHATICFERTILIZERPRODUCTIONCAPACITIESINNORTHAFRICA

haM

<& o

CD3 o\ Company-SiteSimplesuper-Triple.super-AmmoniumTotal. phosphatephosphatephosphatefertilizers

Estimatedtotal P20 MOROCCO OccidentalPetroleum Corporation OfficeCherifiendes

Phosphates (after 1965)

ALGERIA

AinSebaaKenitra, Safi Safi

150 and100hyperph. SNAPCE TUNISIA STEP SAPCE NFKfertilizer SIAPE UAR

LaSenia, Anaba Sfax Tunis Sfax Sfax

ElHarrach, 430 140hyperph, 60 150 100 AbouZaabalFertilizer andChemicalCo. EgyptianChemical Industries"Kiraa"

AbouZaabal KafrElZayat

100 120

250 200or400150or300500-550 130 100 100 120

225 21 130' 6033 10 ro

15

18 TOTALNORTHAFRICA560 230hyperph.5502001,540

435

Page 19

II. PETROCHEMICAL PRODUCTION CAPACITIES - . -

The North African Countries consume chemical products in relatively

... small quantities;(mainly plastics,-synthetic rubbers, ..synthetic fibres and detergents). Further they are not well-off, as far-.as.-raw materials and 'investment conditions are concerned. Since they hitherto preferred to

meet their, needs through imports from the developed-countries, usually from Europe,- their petrochemical industry is just beginning. Although Morocco and Algeria made during 1965-I966 projections for certain produc tions, only the UAR manufactured basic products and a finished product:

dodecylbenzine.. . ,

Actually, the UAR's new refinery at Suez1 with a production of

18,000 tons .of, aromatics (benzines,., toluenes, xylenes) and the production of 6,000tons of dodecylbenzine became operational in 1965. A small

production.capacity of.nylon (?00 tons per annum) and the establishment of a petrochemical complex at Alexandria to which we shall revert later

may be. noted. ... . .

III. CHEMICAL PRODUCTION CAPACITIES' III. 1 Mineral acids and ammonia

The production capacities of these "important"mineral chemical

products are assuming very, considerable prbportidns especially

as the immediately related, industries are amdrig the first in the North Africa, countries. With a few exceptions,''it may be consi dered that all productions I of sulphuric and phosphoric acids are

meant for the manufacture of: phosphatic fertilizers (or nitrogen for ammonium sulphate and diammonium sulphate) and that the

entire production of ammonia is for the manufacture of nitrogenous fertilizers. The only noticeable exceptions, but which account for a'relatively low tonnage, are the manufacture of rayon (for ' sulphuric acid) and/that of explosives(for nitric acid).

; After a study (Chapter II) on the fertilizer production capacities, it is very difficult to give accurate figures for the production

capacities of mineral acids (sulphuric, phosphoric and nitric).

As these productions are very integrated, the capacities for acids in each case appear to have been earmarked to cover.fertilizer •

■'■ productions. Apparently, it is useless to assess the mineral acid capacities except when uses other than fertilizers assume

sizable proportions.

This applies to rayon in the UAR for which a capacity of 20,COO tons of sulphuric acid per annum operates at Kafr El Dawar on behalf of the Misr Rayon Company and to explosives also in the UAR for which a capacity of 3,700 tons of concentrated nitric acid per annum (98-99 per cent) operates at Suez on behalf of the El

Nasr d'Engrais.

E/CN.14/INR/156

Page 20

III.2 Chlorine and soda

Hitherto, local production of chlorine and soda were mainly- related to the- pulp industry and considerably to soap, detergent and bleaching industries.

Chlorine and soda are both produced in four countries of the sub- region through ;the electrolysis of sodium chloride;

- In Morocco, the Sidi-Yahia factory which so far supplies basic products: the "Cellulose of Morocco" has a production capacity of 4,000 tons of chlorine and 4,800 tons of soda per annum.

The production rate has in recent years been about 90 per cent thus meeting the local needs of the pulp industry.

- In Algeria, the Solvay unit of production at Baba Ali with annual capacities of 4,150 tons of chlorine and 4,000 tons of

soda supplies the pulp industry (Cellunaf near Algiers) with

chlorine and soda. The production rate which reached 70per cent in 1965 is fast growing* since plans have already been made for an extension,

- In Tunisia, the cellulose pulp factory at Kasserine is meeting its needs in chlorine and soda through an integrated unit of production. The annual, production.capacities are 1,500 tons for chlorine and 3,000 tons for soda. The production rate which , reached 60 per cent in 1965 is steadily increasing.

- In the.UAR, two companies produce chlorine and soda through the electrolysis of salt. They are the Misr Chemical Industries Company which has an annual capacity of 17,000 tons of chlorine and 20,000, tons of soda at Mexe near Alexandria, as well as the Kafr El Zayat Cotton Company which can produce 3,500 tons of chlorine and 4,000 tons of soda per annum at Kafr El Zayat.

These two units of inadequate size had low production rates of about 65 per cent which did not meet the entire local dtmand for soda; however, an increase in this production rate and the establishment of another unit are expected to meet the UAR's needs very soon..

The Table below summarizes the features of the units of production of chlorine and soda in North Africa.

E/CN.14/INR/156

Page 21.

TABLE 6

CHLORINE AND SODA PRODUCTION CAPACITIES IN NORTH AFRICA IN 1965 (in tons)

COMPANY SITE CAPACITY IN CHLORINE CAPACITY IN SODA

MOROCCO

"Cellulose du ALGERIA

Solvay TUNISIA

"La cellulose"

UAR

Misr Chemical Company

Kafr El Zayat Company

Maroc"

i

Industry

Cotton

Sidi

Baba

Yahia

Ali

Kasserine

Mexe

Kafr Et Zayat

4,

4,

1,

17,

3, 000

150

500

500

500

4 ,"500

4,500

3,000

20,000

4,000

', E/CN.14/INR/156

Page 22

TECHNICO-ECONOMIC FEATURES

- - - • ■ ■ ■ ■ ■ • ■ - ■ Pase-

I. MACRO-ECONOMIC DATA -2fi-

1.1 Population ' 23

1.2 Average per capita income 24

II. ELEMENTS OF PRODUCTION COST

II.1 Electric energy 25

II. 2 Fuel " '25

II.3 Water 25

II. 4 Manpower , 26

E/CN.14/INR/156

Page 23

TECHNICO-ECONOMIC FEATURES

I. " MACRO-ECONOMIC DATA' v ' ' '

1.1 Population ',

Increased-population of the countries in the sub-region-is shown

' ■ ■ :in the following Table: ' ' ' :-

.. Tabl.e 7

NORTH AFRICAN SUB-REGION - POPULATION GROWTH

Country

, * -

MOROCCO ALGERIA TUNISIA LIBYA

UAR SUDAN

... .Total.. ..

(in millions

1964

12.6 11.3 1 4.3 1.6

28.9

12.5 71-2 . .

of inhabitants)

Year's

- 1970

15.0

13-7 5.1 1-9 33.5

15.4

... .84.6

■1975

17.3

15.9 5.9

2.2

38.0

17.9

. 97-2

■ 1-980' ■■-•■

20.0

18.3 . v

6.8

2-5

43.0

" 20.7 111.3

Average annual

increase {%)

^{3.0 2.3 2.7}

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Page 24

1.2 Average per capita, income -

The per capita gross domestic product (GDP) based on known

figures for-1965, is expected to increase on the average annual rate of 2 per cent for 15 years. This rate is gradually increasing from 1 to 1.5 per cent per annum during the 1965-1970 period to 2 and 2.5 per cent for the next two five-year periods.

The particular position of Libya whose ber capita GDP is anticipated to grow on the average of 5«5 Per cent and with a still higher rate for the coming five years must be noted.

The figures for the per capita GDP, grouped together in Table 8 are

only close estimates for the purposes'-of' comparison.

; Table 8 - -

NORTH'AFRICAN SUB-REGION- INCREASE IN THE PER CAPITA. INCOME - .

1965 1980*

MOROCCO 196 260

ALGERIA 220 290/300

TUNISIA .212 285

LIBYA 542 ' 1,200/1,300

UAR 160 225

SUDAN 103 130

* Close estimates.

Page.25

II. ELEMENTS OF PRODUCTION COST . ■■ - . ... . ;

' By way of ^illustration, .axe outlined in this paragraph, the costs of the ,=-:/main components of ■"■the production cost: electric energy, fuel, water,

manpower. These elements help to assess construction costs in the various

countries of the sub-region (cf Vol. in,' Table 33) as well as the profi

tability of the investments:

II.1 Electric energy

Algeria

0.045 French franc/kWh (0.014 at Hassi R'Mel)

. . ■■ : Morocco Tunisia UAH

Libya Sudan

II.2 Fuel Algeria

UAR

; 0.05 . 0.5

0.045

0.05 Frenc 0.06

Natural gas

Fuel oil:

Fuel oil.:

- Could drop to preferential price for the fertilizer industry. Supply from Aswan High Dam.

For industrial needs.

The c^hsr- fv.els (r2fincd gas for instance), are bought on the basis

of an identical price of calory.-

II. 3 Water Algeria UAR

Processed or cooled fresh water.

Processed or cooled fresh water.

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Page 26

II.4 Manpower

Algeria .By way of illustration we give the labour cost (wages and social charges) in the petroleum industry.

(Algiers region).

Engineer 43,000 DA/year

Overseer 36,000 DA/year Operator ' 25,500 DA/year Specialized worker 21,500 DA/year

Unskilled worker 10,000 DA/year '

. ,.- ■ v

UAR The average cost of productive manpower in the chemical industry is:

1 L.E. per man/day.