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Feb 27 2012

Sonatrach Plans 70% Hike In Refining Capacity

Sonatrach Plans 70% Hike In Refining Capacity

Sonatrach’s CEO ΄Abd al-Hamid Zerguine says the state firm’s soon-to-be-unveiled refinery capacity expansion program will see the construction of “three or four” new refineries totaling 18mn tons/year (around 370,000 b/d) in crude distillation capacity. Total capacity will hit 44mn tons/year (900,000 b/d) with this target to be met over the “short to medium term,” Mr Zerguine told Algerian state news agency APS .

Algeria’s refining capacity now stands at around 26mn t/y, according to Mr Zerguine, following the refurbishment and expansion of the Arzew plant from 50,000 b/d to around 70,000 b/d late last year (MEES , 20 February). The country’s biggest plant at Skikda is set for expansion to 330,000 b/d in May. Smaller refineries are at Algiers and Hassi Messaoud.

The Algerian authorities have unveiled several refining capacity expansion plans in recent years – involving in some instances the expansion of existing plants and in others the construction of new plant. Earlier plans for a new 300,000 b/d capacity plant at Tiaret appear to have been quietly abandoned (MEES , 1 March 2010). Algeria is in need of increased refining capacity as booming domestic gasoline and diesel consumption has left the country’s refiners unable to keep up. Algeria imported a record $2bn of refined products in 2011, with a similar level of imports forecast for 2012.

© Copyright MEES 2012.


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