June 16, 2025 [Inspectioneering]- Algeria is accelerating its economic transformation with a $7 billion investment in petrochemical and refining projects, aiming to shift from exporting raw hydrocarbons to producing high-value chemical products. Petrochemicals—vital for manufacturing plastics, fertilizers, textiles, and medical equipment—offer Algeria access to more stable and lucrative markets while reducing dependence on foreign processing.

This industrial push is central to the government’s broader energy diversification strategy, designed to capture greater value within the country and spur socio-economic growth through advanced manufacturing. The $7 billion program encompasses a portfolio of strategic projects targeting job creation, regional development, and export expansion.

Key initiatives include:

• Alkylbenzene Production Plant:This flagship facility, with a 100,000-tonne annual capacity, will supply all domestic detergent and surfactant needs, with surplus for export. It will reduce import costs and foster expertise in advanced chemical production.
• LPG and Condensate Facility:Producing 1,000 tonnes of LPG and 300 tonnes of condensate daily, this plant will serve both industrial and household markets, strengthen local supply chains, and reduce import reliance.
• Polypropylene Megaplant:The $1.5 billion Arzew facility will convert propane into 550,000 tonnes of polypropylene annually, supporting packaging, textiles, and automotive sectors. It is expected to generate up to 6,000 direct jobs and thousands more indirectly, positioning Algeria as a leading plastic resin exporter to Europe and Africa.

The $7 billion petrochemical and refining initiative is more than an industrial expansion—it’s a cornerstone of Algeria’s strategy for economic diversification and resilience. By processing its own raw materials domestically, Algeria is reducing its vulnerability to oil price volatility, currency fluctuations, and external market shocks, while fostering sustainable industries such as manufacturing, logistics, and petrochemicals.

This initiative is the first phase of a sweeping 10-year vision to transform the nation into a leading petrochemical and refining hub for Africa and beyond. The government’s broader downstream roadmap is set to surpass $25 billion in investments by 2030, signaling a long-term commitment to economic diversification and industrialization.