Algeria, endowed with vast hydrocarbon resources, is seeking to optimize its energy potential by developing raw material processing infrastructure. Sonatrach, the central player in the national oil and gas sector, is leading several major petrochemical projects aimed at diversifying production and increasing the value-added of hydrocarbons.
Among these key projects are the Linear Alkylbenzene Petrochemical Complex, the Liquefied Petroleum Gas (LPG) plant at Ghar Al-Baghel, and the Boosting III project for strengthening the Hassi Rโmel field. These infrastructures, vital for the national energy strategy, are being developed with international technology partners like Tecnimont and Baker Hughes.
The Linear Alkylbenzene Petrochemical Complex
Algeria is committed to developing an integrated petrochemical industry capable of locally transforming its hydrocarbon resources into high-value products. In this regard, Sonatrach has launched a production complex for Linear Alkylbenzene (LAB), a key compound used in the manufacturing of industrial and household detergents.
Project Characteristics:
Location: Eastern Algeria (exact location not specified).
Industrial Partner: Tecnimont (Italy).
Production Capacity: 100,000 tonnes per year.
Investment: $1.05 billion.
Expected Commissioning: End of 2027.
This project aims to reduce Algeria’s dependency on petrochemical imports while generating surpluses for export. The establishment of this infrastructure adheres to strict environmental standards, ensuring energy optimization and effective management of industrial emissions and waste.
The Liquefied Petroleum Gas (LPG) Plant at Ghar Al-Baghel: An Advanced Project
LPG is an essential energy resource for both the Algerian domestic market and for export. Recognizing this opportunity, Sonatrach has begun constructing an LPG complex at Ghar Al-Baghel.
Progress and Technical Data:
Industrial Partner: Tecnimont.
Investment: $380 million.
Production Capacity:
1,000 tonnes per day of LPG.
300 tonnes per day of condensates.
Progress: 73% complete (as of early 2024).
Expected Commissioning: First half of 2026.
The project aims to maximize the recovery of natural gas liquids, thus optimizing the country’s gas resources. With modern infrastructure, it will increase the volume of LPG available for export and stabilize supply for the domestic market.
Boosting III Project: Strengthening the Hassi Rโmel Field
Hassi Rโmel, Algeria’s largest gas field, is the focus of an enhancement and strengthening project to maintain optimal production levels. Known as Boosting III, this project is strategic for ensuring domestic supply and fulfilling export commitments.
Key Project Elements:
Total Investment: $4 billion.
Technologies Used:
20 compression trains supplied by Baker Hughes (Frame 5 gas turbines and BCL compressors).
Modernization of the gas collection network.
Installation of three condensate demurcurization units.
Establishment of an advanced utilities management system (fire water network, instrument air, service air, diesel, flare, nitrogen).
Expected Production Capacity: 180 million cubic meters of gas per day.
This project is crucial for the sustainability of Algerian exports to Europe, focusing on optimizing existing infrastructure and introducing advanced technologies to reduce losses and enhance energy efficiency.
Economic and Energy Challenges
Strengthening local petrochemical industry: A major challenge for Algeria is diversifying its economy by further valorizing its natural resources. Currently, most oil and gas extracted are exported in raw form. With these megaprojects, Sonatrach aims to process part of its output locally, increasing the share of refined and petrochemical products in its exports.
Securing energy supplies: The Algerian domestic market sees increasing demand for gas and petrochemical products. These infrastructures are expected to ensure a stable supply and prevent market tensions.
Positioning in international markets: By developing these infrastructures, Algeria also aims to solidify its position as a key energy supplier to Europe and other international markets. Enhanced gas and LPG production capacities should stabilize exports and secure long-term revenues.
Meeting deadlines and overcoming challenges: One of Sonatrach’s main challenges remains adhering to delivery schedules. These projects, requiring significant investments and advanced technologies, rely on effective coordination between industrial partners and local authorities.
The oversight by Sonatrach’s CEO, Rachid Hachichi, and regular meetings with Tecnimont and Baker Hughes, reflect the group’s commitment to maintaining a rigorous work pace to meet the set deadlines.
Conclusion: Structuring Projects for Algeria’s Energy Future
Sonatrach’s petrochemical megaprojects are part of an ambitious industrial strategy aimed at modernizing Algeria’s energy sector and enhancing its competitiveness on international markets. With commissioning planned between 2026 and 2027, these infrastructures will play a pivotal role in transforming the national energy landscape, ensuring better hydrocarbon valorization and securing resources for the future.