Oil & Gas Algeria sets $7bn investment target for refinery projects By Nadim Kawach June 13, 2025, 3:55 PM Ramzi Boudina/Reuters Mohamed Arkab, Algerian energy minister, said 'an investment portfolio of around $7 billion has been earmarked for the execution of several major industrial projects' Petrochemical and refinery plans Multiple projects to increase income Completion expected by 2029 Algeria has reportedly launched new petrochemical and refining projects worth $7 billion, part of its drive to diversify its state revenue sources and tackle a persistent budget deficit. Mohamed Arkab, the Algerian energy minister, revealed the projects during a parliament policy session on Thursday, local press reported on Friday. The projects in north and east Algeria will be completed during the 2025-29 development plan and will produce various petrochemical and refined products. “An investment portfolio of around $7 billion has been earmarked for the execution of several major industrial projects, as part of the implementation of the strategy aimed at increasing the conversion rate of hydrocarbons into value-added products,” Arkab said. The projects comprise a refinery in Hassi Messaoud in east Algeria with an output capacity of five million tonnes, to be completed in late 2027, the minister said. They also include a naphtha cracker project in the northern port of Arzew with a production capacity of 1.2 million tons of gasoline starting in March 2027 in addition to a fuel cracker plant in the northeastern Skikda city, he said. Arkab said it will produce 1.75 million tons of diesel and 250,000 tons of asphalt when it is completed in 2029. Another project in Arzew involves the production of methyl tertiary butyl ether or MTBE, an additive used to improve gasoline combustion. The project has a capacity of 200,000 tons per year and is expected to come online by the end of 2025. Algeria, a member of Opec, has been locked in a drive to boost its hydrocarbon resources and expand related industries to maximise income. Algeria to announce results of oil block bids next month China’s Jingdong to build $500m steel plant in Algeria State first, market later for Algeria’s economic vision Last month, Arkab announced Algeria was offering six oil sites with a combined area of more than 150,000 square kilometers to foreign companies. Over the past two years, the North African nation has also been involved in talks with oil firms from Saudi Arabia and other countries for crude and gas exploration and development in a bid to reverse a decline in its reserves. Algeria has one of the world’s largest gas deposits, officially estimated at about 160 trillion cubic feet. It also controls nearly 13 billion barrels of recoverable oil reserves. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
