The new Hassi Messaoud refinery in Algeria's Ouargla province is a major project for the country's refining sector. Located in the Hamraa basin, it will be a significant economic and energy driver, aimed at valorizing hydrocarbons nationally and meeting growing domestic demand for petroleum products. The refinery will also help reduce pressure on the larger Skikda and Arzew refineries, while opening up new export opportunities.
The refinery is expected to produce around 2.65 million tons of diesel per year and 1.37 million tons of gasoline, meeting European standards. It will also produce kerosene, liquefied petroleum gas, lubricants, and asphalt. Detailed data indicates an annual production of 901,700 barrels of propane, 1.27 million barrels of butane, and 2.49 million barrels of 95-octane gasoline. The refinery will have a significant impact on Algeria's refining capacity.
The project will increase Algeria's refining capacity to around 775,000 barrels per day. With a capacity of over 97,000 barrels per day, the new refinery will be the second-largest in the Hassi Messaoud area and the second-largest in Algeria by capacity. The refinery is being led by state-owned oil company Sonatrach, in partnership with Spanish company Tecnicas Reunidas and Chinese company Sinopec.
The Hassi Messaoud refinery project has a total investment of around $4 billion. The project is expected to be completed and enter service by the end of 2027. Once operational, it will be Algeria's seventh refinery. The new facility will help reduce Algeria's reliance on imported petroleum products, particularly diesel.
The refinery's diverse product range will enhance the flexibility of Algeria's refining system. The project will also create new opportunities for the country's oil and gas sector. Algeria's Minister of Energy and Mining has shown interest in the project, with recent visits to the site.
The Hassi Messaoud refinery project is part of Algeria's efforts to boost its oil and gas production. The country aims to increase its refining capacity and reduce its reliance on imports. The new refinery will play a significant role in achieving these goals.
The project's partnership between Sonatrach, Tecnicas Reunidas, and Sinopec reflects the international cooperation in Algeria's energy sector. The project's completion is expected to have a positive impact on Algeria's economy and energy security.
Key points
- The new refinery will increase Algeria's refining capacity to around 775,000 barrels per day.
- The project has a total investment of around $4 billion and is expected to be completed by the end of 2027.
- The refinery will produce around 2.65 million tons of diesel per year and 1.37 million tons of gasoline.
