Algeria has decided to mark a strategic turning point in its petrochemical sector by launching a major investment of $7 billion for the period 2025-2029. The aim of this initiative is to strengthen local hydrocarbon processing, a key sector of the country's economy.
This ambitious project aims to increase the rate of refining hydrocarbons into high-value-added products to 50% by the end of the five-year period from the current 32%. This change is part of the drive to develop natural resources and energy sovereignty, reduce dependence on imports, and develop local production facilities.
Flagship projects to strengthen industry in Algeria
The Minister of Energy and Mining, Mohamed Arkab, spoke in detail about the projects that will be financed by these investments, and this during a plenary session devoted to oral questions, which were reported by the website of Algerian radio. Among the most significant is the construction of a new oil refinery in Hassi Messaoud in southern Algeria with a production capacity of 5 million tons per year. This refinery, which is due to be commissioned at the end of 2027, will increase local production of fuels and petroleum products.
In addition, naphtha steam cracking plants in Arzew, near Oran, and fuel oil cracking plants in Skikda, in the east, will be launched in the coming years. The first will produce an additional 1.2 million tons of gasoline from 2027, while the second is expected to produce 1.75 million tons of diesel fuel and 250,000 tons of bitumen from 2029.
A project aimed at achieving energy self-sufficiency
These investments are aimed not only at expanding the local processing potential, but also at increasing the country's energy self-sufficiency. In 2024, Algeria managed to produce 30 million tons of petroleum products, which significantly reduced fuel imports. This reduction increased the import bill from $1 billion in 2019 to $400 million in 2024, which is 60% less.
Algeria, which until recently depended on the import of some petroleum products, can now redirect its surplus to export. This dynamic is a convincing sign of a country's ability to control its own production and maximize the added value of its natural resources.
Strategic impact on the labor market
This reorientation towards a more efficient petrochemical industry will also have a positive impact on Algeria's labor market. The creation of this new infrastructure will create many jobs in the region both during the construction and operation of these facilities. This dynamic is also expected to strengthen local businesses and expand the industrial sector, which will contribute to economic diversification.
Having invested $7 billion in petrochemicals, Algeria is taking a decisive step towards local hydrocarbon processing, which contributes to its economic growth, energy sovereignty and competitiveness in the global market. This project demonstrates the country's commitment to establish itself as a major player in the oil industry and prepare for future challenges.
This ambitious project aims to increase the rate of refining hydrocarbons into high-value-added products to 50% by the end of the five-year period from the current 32%. This change is part of the drive to develop natural resources and energy sovereignty, reduce dependence on imports, and develop local production facilities.
Flagship projects to strengthen industry in Algeria
The Minister of Energy and Mining, Mohamed Arkab, spoke in detail about the projects that will be financed by these investments, and this during a plenary session devoted to oral questions, which were reported by the website of Algerian radio. Among the most significant is the construction of a new oil refinery in Hassi Messaoud in southern Algeria with a production capacity of 5 million tons per year. This refinery, which is due to be commissioned at the end of 2027, will increase local production of fuels and petroleum products.
In addition, naphtha steam cracking plants in Arzew, near Oran, and fuel oil cracking plants in Skikda, in the east, will be launched in the coming years. The first will produce an additional 1.2 million tons of gasoline from 2027, while the second is expected to produce 1.75 million tons of diesel fuel and 250,000 tons of bitumen from 2029.
A project aimed at achieving energy self-sufficiency
These investments are aimed not only at expanding the local processing potential, but also at increasing the country's energy self-sufficiency. In 2024, Algeria managed to produce 30 million tons of petroleum products, which significantly reduced fuel imports. This reduction increased the import bill from $1 billion in 2019 to $400 million in 2024, which is 60% less.
Algeria, which until recently depended on the import of some petroleum products, can now redirect its surplus to export. This dynamic is a convincing sign of a country's ability to control its own production and maximize the added value of its natural resources.
Strategic impact on the labor market
This reorientation towards a more efficient petrochemical industry will also have a positive impact on Algeria's labor market. The creation of this new infrastructure will create many jobs in the region both during the construction and operation of these facilities. This dynamic is also expected to strengthen local businesses and expand the industrial sector, which will contribute to economic diversification.
Having invested $7 billion in petrochemicals, Algeria is taking a decisive step towards local hydrocarbon processing, which contributes to its economic growth, energy sovereignty and competitiveness in the global market. This project demonstrates the country's commitment to establish itself as a major player in the oil industry and prepare for future challenges.
