Advancements in Petrochemical Industry: Sonatrach Initiates Construction of Three Major Complexes
BY: Dr. Hana Saada
ALGIERS- Rachid Hachichi, the CEO of Sonatrach, provided insights into the company’s progress in the petrochemical sector, highlighting the construction of three significant complexes aimed at enhancing Algeria’s industrial capabilities. Notably, Sonatrach ceased fuel imports in 2020 and aspires to become an exporter in the medium term.
Discussing ongoing projects in petrochemicals, Hachichi mentioned the construction phase of the Methyl Tert-Butyl Ether (MTBE) project in Arzew. This project aims to valorize methanol and butane raw materials, producing 200 KTA of MTBE, an additive for unleaded gasoline.
The second project under construction is the PDH-PP (Propane Dehydrogenation-Polypropylene Production) complex in Arzew. This initiative seeks to convert propane into polypropylene, a material currently imported, with a production capacity of 500 KTA. Scheduled to commence operations in the first half of 2027, the complex is poised to meet domestic demand and generate surplus for export.
Additionally, the Linear Alkyl Benzene (LAB) project in Skikda, currently in the contract signing phase, aims to utilize kerosene and benzene from the Skikda RA1K refinery. The project targets a production output of 100 KTA of LAB, a key ingredient in detergent manufacturing. Expected to be operational by the second half of 2027, the LAB complex will meet domestic demand and generate surplus for export.
Highlighting Sonatrach’s commitment to maximizing Algeria’s gas reserves for national development, Hachichi emphasized the company’s dedication to further investment in renewable energy. He expressed Sonatrach’s intention to explore emerging markets with growing natural gas demand to offset potential losses in traditional markets and adapt to financing constraints imposed by industrialized nations favoring renewable energy transitions.
While underscoring the pivotal role of natural gas in the energy transition, Hachichi stressed the increasing global gas consumption, projected to reach 5000 billion cubic meters by 2050. He emphasized the complementary relationship between renewable energy sources and natural gas in the global energy mix, with renewables covering approximately 7% of global primary energy consumption.
In conclusion, Hachichi emphasized that integrating renewables into Algeria’s energy mix presents a significant environmental opportunity. Sonatrach remains committed to leveraging Algeria’s abundant gas resources and advancing sustainable energy solutions to meet both domestic and international demands.
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