✏️ BY: Dr. Hana Saada
Algiers, Algeria | August 16th, 2024 — In 2024, Sonatrach, Algeria’s leading oil and gas company, has made notable strides in expanding its international presence, with new export markets and strategic infrastructure projects, according to CEO Rachid Hachichi.
During a recent appearance on the Algerian television program “Likaa Télévision,” Hachichi revealed that Sonatrach has successfully penetrated several new markets across Europe, the Americas, and Asia this year. The company has begun exporting natural gas to Germany, the Czech Republic, and Croatia, while also shipping oil to the U.S. West Coast, India, and Brazil. This expansion reflects a strong international demand for Algerian hydrocarbons despite a complex geopolitical landscape.
Hachichi announced that Sonatrach signed 16 international contracts for Algerian oil exports in 2024. This move underscores the robust demand for Algerian oil and gas on the global stage, despite challenging global conditions.
In Niger, Sonatrach is pursuing a partnership to drill four oil wells, with plans for further development contingent on positive results. This initiative is part of a broader African partnership program focused on “win-win” scenarios, including training human resources through Sonatrach’s expertise.
Looking ahead, Hachichi emphasized Sonatrach’s strategy to diversify its activities and reduce reliance on imports by developing local production capabilities for equipment used in hydrocarbon industries. This strategy has attracted significant interest from major energy companies in Algeria’s mining sector.
Hassi Messaoud Refinery and Other Key Projects
On the topic of refining and production, Hachichi outlined several ongoing and upcoming projects. The Hassi Messaoud refinery project, which has faced delays, is expected to be relaunched soon, with an agreement in place with the executing company. This refinery, a key infrastructure, will process 5 million tonnes of crude oil annually.
Currently, Algeria operates six refineries with a combined annual production capacity of 10 million tonnes, matching the national consumption. Additionally, the planned Alkylbenzene Linear (LAB) unit in Skikda will produce 100,000 tonnes per year and support the detergent industry. The MTBE project for unleaded gasoline production is set to commence next year.
The polypropylene unit in Arzew is slated to begin operations in 2027. This unit, part of a partnership with a Turkish company and with a 34% Algerian contribution, will enhance Algeria’s polypropylene production capacity.
Hachichi also highlighted the importance of the Hassi R’mel Boosting project, crucial for maintaining the production of 55% of Algeria’s natural gas. The project is expected to be operational by late 2026 or early 2027, ensuring continued production at a rate of 188 million cubic meters per day.
Desalination Stations and Recruitment
Regarding infrastructure development, Sonatrach is progressing on five seawater desalination stations, with nearly 70% of the work completed. These stations are scheduled for completion by the end of 2024 or early 2025.
In terms of employment, Sonatrach continues to recruit annually across various fields, with a transparent process managed through the National Employment Agency (ANEM). Over the past decade, the company has hired 14,000 candidates from southern Algeria, with plans for further recruitment across the country.
This comprehensive expansion and development strategy positions Sonatrach as a pivotal player in the global energy market, driving growth through international partnerships, infrastructure advancements, and strategic investments.
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