“Sonatrach Prioritizes Gas Reserves Valorization, Eyes Renewable Energy Investment,” Says CEO

BY: Dr. Hana Saada

ALGIERS- Rachid Hachichi, the CEO of Sonatrach, Algeria’s state-owned oil and gas company, emphasized the company’s commitment to seizing all available opportunities to better valorize the country’s gas reserves, serving the national economy’s development. Additionally, he reiterated Sonatrach’s dedication to further investment in renewable energies. In an interview with APS, Mr. Hachichi indicated that Sonatrach would likely explore new emerging markets where natural gas demand is growing to offset potential losses in traditional markets and adapt to financing constraints imposed by industrialized countries promoting the transition to renewable energies.

Despite this, gas is expected to play a “key role” in transitioning to other energies by 2050,” he assured, noting that all forecasts from international institutions and study bureaus converge on a 1 to 2% annual increase in global gas consumption, bringing global gas consumption to 5000 billion cubic meters by 2050.

Currently, renewable energies account for nearly 7% of global primary energy consumption, and these energies, in their various forms, are indispensable allies of natural gas in the energy mix.

Nevertheless, Mr. Hachichi emphasized that integrating renewable energies into Algeria’s energy mix represented “a real lever for action in environmental terms.”

Petroleum Chemistry: Three Major Complexes Under Construction

Mr. Hachichi also highlighted the company’s progress in the petrochemical sector, noting that Sonatrach has not imported fuels since 2020 and even aspires to export in the medium term.

Regarding ongoing projects in petrochemicals, he specifically mentioned the construction phase of the MTBE (Methyl Tert-Butyl Ether) project in Arzew. This project aims to valorize raw materials such as methanol and butane, with an expected production of 200 KTA of MTBE used as an additive for unleaded gasoline.

The second project currently under construction is the STEP (PDH-PP Polymers Production) project in Arzew, which aims to valorize propane raw material to produce polypropylene, currently imported. With a production capacity of 500 KTA, the complex is expected to start operations in the first half of 2027, satisfying national consumption, with surplus for export.

The third project, LAB (Linear Alkyl Benzene) in Skikda, is currently in the contract signing phase and aims to valorize raw materials such as kerosene and benzene from the Skikda RA1K refinery, with a production capacity of 100 KTA of LAB used as a raw material for detergent manufacturing. This complex, expected to start operations in the second half of 2027, will meet national consumption needs and generate surplus for export.

Among other projects in the maturation phase, Mr. Hachichi mentioned the project to establish a naphtha steam cracking complex in the Skikda industrial zone, potentially through a partnership. This project aims to valorize raw materials such as naphtha and ethane, producing ethylene and derivatives to meet the needs of the CP2K petrochemical complex, currently imported.

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