Algerian Minister of Hydrocarbons Mohamed Arkab recently inspected the construction site of the new Hassi Messaoud refinery in Ouargla province. The refinery, located in the Haoud El-Hamra zone, is expected to have a significant impact on the country's refining and hydrocarbon transformation capabilities. With a planned capacity of 5 million tons of crude oil per year, the facility is a key component of Algeria's strategy to enhance its domestic refining capacity.
During his visit, Arkab was accompanied by Sonatrach CEO Noureddine Daoudi and other sector officials. They reviewed the project's progress, equipment installation, and technical aspects of the refinery's construction. The minister emphasized the project's strategic importance in strengthening Algeria's refining and transformation capabilities. He noted that the refinery will help meet domestic demand for petroleum products, such as diesel and gasoline, and generate surplus quantities for export.
The refinery's location near Hassi Messaoud's oil fields will facilitate crude oil supply and reduce transportation costs. The project incorporates modern industrial equipment and processes, ensuring the production of high-quality petroleum derivatives while minimizing environmental impact. Arkab stressed the need to mobilize resources, reinforce work monitoring, and adhere to contractual commitments, safety regulations, and environmental requirements.
A coordination meeting was held with Sonatrach officials, Spanish and Chinese companies involved in the project, and associated national firms. Discussions focused on project progress, technical and organizational challenges, and the planned completion of the refinery's initial phase by the end of 2027. The entire project is expected to be finalized by 2033.
The project is being developed as a joint venture between Técnicas Reunidas, which holds 51% of the shares, and Sinopec, with 49%. The total contract value is approximately $4 billion, with over $2 billion allocated to Técnicas Reunidas. The project's implementation follows a change in partners, with Samsung Engineering being replaced by Sinopec.
In addition to the refinery project, Arkab visited several production sites at the Hassi Messaoud oil field, where he was briefed on ongoing and planned activities to boost national hydrocarbon production. He announced that Sonatrach had made 18 new hydrocarbon discoveries in 2026 and that primary hydrocarbon production had reached 128 million tons of oil equivalent by September 2026.
The Algerian government aims to increase primary hydrocarbon production to 201 million tons of oil equivalent by 2030 through an intensified exploration program. The development of refining capacity is a key component of this strategy, alongside exploration and production growth. The new Hassi Messaoud refinery is expected to play a significant role in achieving these objectives.
Key points
- Algeria's new Hassi Messaoud refinery is set to begin initial production by the end of 2027, with a planned capacity of 5 million tons of crude oil per year.
