March 25 (Bloomberg) -- Algeria signed accords with Norway and Qatar to build fertilizer factories as growing populations boost food demand, spurring farmers to plant more crops.
Yara International ASA of Norway is investing in a $2 billion ammonia, nitric acid, ammonium nitrate and nitrogen fertilizer factory, according to the state-run Algeria Press Service. It’s sharing ownership with Asmidal, part of Algeria’s state-owned Sonatrach.
Norway is also joining Qatar in constructing a $3.5 billion ammonium plant in Hadjar Essed, and a phosphoric acid factory in Oued Koubrite, in the northeast near the border with Tunisia, APS said. They are also sharing ownership with Algeria.
The Algerian government said last year it was allocating $14 billion to build three fertilizer factories by 2020, with a total installed capacity of 35 million tons per year. Foreign ownership in Algeria is limited to 49-51 percent, under its investment law.
Algeria’s Hyproc, another Sonatrach unit, agreed to purchase two LPG tankers from Qatar, each with 117,000 cubic-meter capacities and at a total cost of $450 million, according to the APS report.
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