AzMeCo and Souakri Group Partner to Launch Algeria Methanol Venture
Deal News | Mar 30, 2025 | EIN
AzMeCo and the Souakri Group have announced a joint venture to establish the Algeria Methanol Company, symbolizing a significant milestone in petrochemical industry collaboration. The MOU signed between Azerbaijani methanol producer, AzMeCo and Algeria's diversified Souakri Group, is set to develop a large-scale methanol plant with a capacity of 1 million tons annually, at an investment of $1 billion. The project will unfold in two phases; the first focuses on methanol production while the second expands into derivative chemicals like ammonia and urea. Both companies are committed to sustainability with designs incorporating advanced CO capture technologies. This venture supports Algeria’s goals of industrial diversification and aims to position Algeria as a major player in the global methanol market.
Sectors
- Petrochemicals
- Construction Materials
- Agri-business
Geography
- Algeria – The location of the planned methanol production facility and the primary market for the joint venture.
- Azerbaijan – Home base of AzMeCo, contributing its methanol production expertise to the joint venture.
- United Kingdom – The location of the announcement, involving the participation of the ambassador of Algeria to the UK.
Industry
- Petrochemicals – The establishment of the Algeria Methanol Company focuses on methanol production, a key component in the petrochemical industry.
- Construction Materials – Groupe Souakri has significant expertise in the construction materials industry, contributing to Algeria's industrial infrastructure.
- Agri-business – Souakri Group's diversification includes a presence in the agri-business sector, relevant to the industrial base of the partnership.
Financials
- $1 billion – Estimated investment for Phase I of the methanol plant development.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| AzMeCo | Partner in the joint venture | Company | Azerbaijan Methanol Company LLC, contributing technical know-how and global market reach to the joint venture. |
| Groupe Souakri | Partner in the joint venture | Company | An Algerian industrial conglomerate, contributing local market knowledge and petrochemical expertise. |
| Nizami Piriyev | Chairman of AzMeCo | Person | Chairman of AzMeCo, overseeing the collaboration with Groupe Souakri. |
| Abdenour Souakri | President of Groupe Souakri | Person | President of Groupe Souakri, engaged in strategic planning for the joint venture. |
| Nasib Piriyev | Representative of AzMeCo | Person | Representative overseeing roles in the joint venture with Groupe Souakri. |
| His Excellency Nourredine Yazid | Ambassador of Algeria to the UK | Government | Ambassador participating in the announcement and symbolic representation of the collaboration’s diplomatic facet. |
| Houari Abdelatif | Head of the Delegation Responsible for Foreign Trade | Government | Engages in the development of international trade for the project. |