Algeria to Double Refining Capacity to 60 Million Tons by 2018

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Algeria has been forming plans for the past two years to more fully develop its energy resources and production capacity.

Toward the end of 2012, Sonatrach, the state-controlled energy group, announced that it would invest $80 billion in oil and natural gas projects from 2012 through 2016. Four oil refinery projects would require $14 billion; another $15 billion would be invested in several energy-related projects in 2013, where $120 billion was invested in 2012.

Last month, Oil Minister Youcef Yousfi said the country would double its oil refining capacity by building six new refineries through 2018. Refining capacity would be raised to 60 million tons annually. Construction will start on five of the new plants at the end of 2013. The minister increased the investment to $100 billion in upstream oil and gas exploration through 2020, he announced recently while in the U.K.

The domestic market currently produces about 30 million tons of refinery output annually, and the refining expansion program is designed to free the country from fuel imports, as well as export surplus product.

Algeria is seeking foreign investment, and the U.K. is eager to diversify its imports of LNG. In January, British Prime Minister David Cameron visited Algeria and promised to cooperate on security and intelligence, following the attack by Islamic militants on the In Amenas gas facility.

In the power sector, consumption will be about 80 terawatts by 2020 and 150 terawatts by 2030.

For related information, see December 19, 2012, article - Algeria Clearing the Decks for International Shale Gas Development Projects.

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