Algeria’s Sonatrach Signs $15.5mn Skikda Refinery Upgrade

Sonatrach has awarded engineering contracts for two projects to provide badly needed upgrading capacity at Algeria’s largest refinery. It is also planning an MTBE project.

Algeria’s Sonatrach is beginning to address an urgent need for upgrading capacity at its existing refineries, which has led to imports of both gasoline and diesel since 2012 despite total refining capacity exceeding domestic demand.

This week Sonatrach signed contracts worth a total €15.5mn ($16.2mn) with Spain’s Tecnicas Reunidas for basic engineering studies for a hydrocracker and naphtha reformer to be installed at the country’s largest refinery, 355,000 b/d Skikda.

Sonatrach says the hydrocracker will process 4.6mn tons/year of surplus fuel oil, while the reformer will treat 4mn t/y of surplus naphtha (see table), to yield an additional 3.2mn t/y (65,700 b/d) of gasoil and 3.5mn t/y (81,500 b/d) of gasoline respectively. (CONTINUED - 597 WORDS)


table Algeria Refineries Expansion Plan ('000 B/D)