Petrochemicals: Sonatrach's projects and the import reduction challenge
Sonatrach has shortlisted international firms, including China's HQC, Egypt's Enppi, Spain's Técnicas Reunidas, and Britain's Wood, for engineering studies on two major facilities: a base oil production unit in Arzew and an ethylene complex in Skikda. These developments are part of the 2025-2029 petrochemical strategy, a $7 billion investment program intended to boost local hydrocarbon processing from 32% to 50%. While the goal is to lower import expenditures for goods such as plastics and lubricants, the project timelines indicate that operations are unlikely to commence before 2030. The final influence on Algeria's trade balance will ultimately depend on confirmed production capacities and the necessary expansion of downstream manufacturing infrastructure.