Algeria Advances Refining Expansion With Start Of Biskra Construction
Algeria on 15 September started construction of a new $3bn, 5mn tons/year (100,000 b/d) refinery near the city of Biskra 300km southeast of Algiers: the first of four new plants totalling 400,000 b/d set to come onstream by 2017.
The Biskra plant will produce 500,000 t/y (11,600 b/d) of gasoline, 220,000 t/y (7,000 b/d) of LPG and 169,000 t/y (3,600 b/d) of Kerosene, according to energy minister Youcef Yousfi, speaking at the launch. Three further plants of �similar� configuration are slated to come onstream by 2017. These will be in Ghardaia, Tiaret and Hassi Messaoud, Mr Yousfi said. Work on these has yet to begin. The latest pronouncement fleshes out a statement by Sonatrach CEO �Abd al-Hamid Zerguine earlier this year that the state-owned company would build �three or four� new refineries over the �short to medium term.� Hassi Messaoud, 400km to the south of Biskra, is the site of a small existing refinery as well as Algeria�s largest oilfield (the 300,000 b/d-plus field of the same name). Although Algeria has not disclosed the likely crude source for the Biskra refinery the key OB1 crude pipeline linking Hassi Messaoud with the port of Skikda passes Biskra. Tiaret was the site of earlier plans for a new 300,000 b/d plant (MEES, 1 March 2010).
Petchems Plans
The Biskra plant will also form the nucleus of a �regional petrochemical hub,� Mr Yousfi says. Petrochemical plants would be built in the nearby towns of Khenchela, Batna and M�sila in parallel with its construction. However it remains to be seen if Algeria can find the gas to fuel this planned petrochemicals expansion. Given static gas production Algeria is already having problems balancing booming domestic gas demand (mostly for power generation) with its export commitments. On top of this the country plans to add over 12gw of gas-fired power plants by 2017 (MEES, 3 September). At least one existing major petrochemicals project � Total and Sonatrach�s plans for a 1.4mn t/y ethane cracker in Arzew, originally slated for 2009 start-up � is already (seemingly indefinitely) on hold due to a lack of gas feedstock.
Algeria has been undertaking a major upgrade and expansion project at its existing refineries. Total capacity is set to rise to almost 26mn t/y (520,000 b/d) by the end of next year, up from 22mn t/y at the start of 2011 (see table).The Arzew refinery was expanded from 50,000 b/d to 75,000 b/d late last year, whilst work to expand the country�s largest plant at Skikda by 10% to 330,000 b/d and boost diesel and gasoline production is ongoing and set for completion early next year. The plant has been operating at below half capacity since July, with upgrade work taking place on each of the plant�s two crude distillation units (CDUs) in turn. Work is being carried out by South Korea�s Samsung Engineering, which won a $2.6bn contract in 2009 (MEES, 24 August 2009).
Algeria's Refining Capacity
Capacity | ||||
Refinery | Start-up | Mn t/y | '000 b/d | notes |
Algiers | 1964 | 2.7 | 54 | |
Arzew | 1974 | 3.75 | 75 | following 25,000 b/d expansion completed late 2011 |
Hassi Messaoud | 1979 | 1.2 | 24 | |
Skikda* | 1980 | 15 | 300 | |
Adrar | 2007 | 0.6 | 12 | operated by China's CNPC (70%) with Sonatrach (30%) |
Total end 2011 | 23.25 | 465 | ||
Skikda expansion | early 2013 | 1.5 | 30 | takes Skikda capacity to 16.5mn t/y |
Algiers expansion | 2013 | 0.95 | 19 | takes Algiers capacity to 3.65mn t/y |
Total end 2013 | 25.7 | 514 | ||
Biskra | 2016 | 5 | 100 | construction began 15 Sep 2012 |
Ghardaia | 2017 | 5 | 100 | planned |
Tiaret | 2017 | 5 | 100 | planned |
Hassi Messaoud | 2017 | 5 | 100 | planned |
Total end 2017 | 45.7 | 914 | ||
*Skikda is also the site of a 5mn t/y condensate refinery which entered service in 2009.
Source: Sonatrach, MEES estimates.
Copyright MEES 2012.
