Algeria seeks to boost hydrocarbon processing

Algeria, a major oil and gas producer, aims to reduce its reliance on imported products made from hydrocarbons by increasing domestic processing of its raw resources. This goal was announced by the state minister in charge of Hydrocarbons, Mohamed Arkab, during a presentation to the finance committee of the National People's Assembly.

New target for hydrocarbon transformation

Arkab set a goal to transform more than half of Algeria's hydrocarbons on its own territory, a significant jump from the current rate of about 32 percent. This target is part of a broader strategy outlined in the 2027 budget and aims to reach a transformation and valorization rate exceeding 50 percent of production.

Import costs and investment plans

Algeria still spends around 400 million dollars annually on imported hydrocarbon products, down from 1 billion dollars in 2019. To support this transformation, the government has included a 71.6 billion dollar investment program by 2030, with nearly 13 billion dollars allocated to refining capacity.

New refinery and industrial projects

The new Hassi Messaoud refinery is among the projects intended to boost transformation capacity. Several industrial complexes are under construction, including polypropylene production units in Arzew, western Algeria. These projects are part of a petrochemical portfolio valued at about 7 billion dollars for the period 2025-2029.

Export growth and revenue increase

In 2024, Algeria exported about 14 million tons of petroleum derivatives, exceeding its internal needs. Hydrocarbon export revenues reached 37.5 billion dollars during the first nine months of 2026, up from 31 billion dollars during the same period in 2025.

2027 as a key milestone

The year 2027 is expected to be a critical stage in Algeria's energy transformation. Several petrochemical complexes under construction are scheduled to begin operations by the end of 2027, helping the country move closer to its transformation goals.