The government has unveiled a £7 billion investment plan to massively expand its refining and petrochemicals capacity from 2026 onwards, confirming its desire to move beyond its status as a crude oil exporter.
This project, recently presented by Energy Minister Mohamed Arkab, is part of a ten-year strategy aimed at creating added value, reducing dependence on imports and positioning the country as a key regional player in the chemical industry.
The plan is based on the construction of several strategic infrastructures that will shape Algeria's industrial landscape:
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A 5 million tonne per annum refinery in Hassi Messaoud, scheduled to come on stream in 2027.
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A naphtha steam cracking unit in Arzew, capable of producing 1.2 million tonnes of petrol per year, is also expected to come on stream in 2027.
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A £1.5 billion polypropylene mega-complex. This facility will convert propane into 550,000 tonnes of polypropylene per year, an essential raw material for the textile, packaging and automotive industries.
By developing its downstream sector, Algeria is seeking to capture a larger share of the value generated by its hydrocarbon resources. This ambition involves satisfying domestic demand and exporting finished or semi-finished products with higher market value.
Other projects include an alkylbenzene plant (100,000 tonnes/year) to meet the needs of the detergent industry and an LPG and condensate processing facility to secure local supply.
This announcement is part of a broader trend observed across the African continent, where several resource-rich nations, such as Nigeria with its gigantic Dangote refinery, are seeking to develop their local processing capacity. The common goal is to benefit from the industrial and economic spin-offs of the petrochemical value chain, a rapidly growing sector.
This £7 billion plan therefore sends a strong signal to investors and represents a potential lever for diversification and wealth creation in Algeria.