Summary:

On 12 August 2026, Sonatrach and the Algerian Fertilizer Company (AFC) signed EPC contracts with Italy’s Saipem and China’s CHEC, advancing Algeria’s integrated phosphate project into industrial execution with initial production targeted for 2027. 

The contracts cover mining and chemical facilities at Bled El Hadba and Oued El Kebrit, as well as dedicated port infrastructure at Annaba, supporting Algeria’s plans to expand phosphate processing and fertilizer production. 

The project targets annual production of around 6 million tons of upgraded phosphate and 4 million tons of phosphate and nitrogen fertilizers at full capacity. 

Outlook: 

Algeria is likely to fill part of the space left by Tunisia in regional phosphate markets as Tunisian production remains constrained, giving Algiers an opportunity to build market share and establish stronger commercial relationships with buyers. 

This could support Algeria’s longer-term emergence as a major regional phosphate and fertilizer supplier, particularly if it sustains higher-value downstream production and converts new capacity into reliable exports. The main variable will be whether execution and market development keep pace with the expansion of production capacity. 

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