Hassi Messaoud refinery to start production in late 2027

Algeria's new refinery at Hassi Messaoud, in Ouargla wilaya, will start initial production at the end of 2027. It will process 5 million tonnes of crude oil a year.

Mohamed Arkab, Minister of State and Minister of Hydrocarbons, inspected the construction site on Tuesday, Algérie Eco reported.

The site is in the Haoud El-Hamra area. Noureddine Daoudi, chief executive of Sonatrach, and officials from the companies doing the work accompanied the minister.

The minister looked at how far the work has progressed, the assembly of the equipment and the technical aspects of building the refinery.

Arkab said the refinery is one of the main projects the sector is relying on to strengthen Algeria's refining and processing capacity.

The refinery should help meet domestic demand for petroleum products, especially diesel and petrol, and free up extra quantities for export.

The refinery will be close to the Hassi Messaoud oilfields, which should make crude supply easier. Its location should also cut transport costs for products sent to the southern wilayas and improve their distribution across the country.

The project uses modern equipment and processes, including deep conversion, a refining process. The processes should make products that meet international quality standards and limit emissions and effects on the environment.

Work and monitoring

During the visit, Arkab told the staff and equipment to be brought together and monitoring of the work to be increased. He also told the companies that contract commitments, industrial safety rules and environmental requirements must be respected.

A coordination meeting brought together Sonatrach officials, the Spanish and Chinese companies doing the work and national firms linked to the project. Talks covered progress on the site and the technical and organisational difficulties met so far.

The minister said the refinery should enter initial production at the end of 2027, and that all the project's facilities should be finished by 2033.

Background to the project

The first stone was laid in February 2025. In late November 2024, the Spanish group Técnicas Reunidas announced that the project would be restarted with Sonatrach and China's Sinopec.

Sonatrach first awarded the project in late 2019 to a consortium of Técnicas Reunidas and Samsung Engineering of South Korea. Sinopec replaced Samsung Engineering, having been a partner of Técnicas Reunidas since a deal signed in September 2023.