Technical Press Release & Investment Summary on Sonatrach inauguration of the Modernized Sidi R'cine Refinery (Algiers Refinery)
- Inaugurated on February 21, 2019.
- EPC contract with China Petroleum Engineering and Construction Corporation (CPECC) signed Dec 6, 2016, valued at ~45 billion DZD (~€380m / $410m).
- Total crude capacity rose 35% to 3.645 million t/y; gasoline output increased +225% to 1.3 million t/y; diesel and LPG also rose significantly.
- New units include a reformer, isomerization unit and hydrotreater; the startup fully offset gasoline imports previously up to $2 billion USD annually.
Overview
On February 21, 2019, the Algerian national oil company, Sonatrach, officially inaugurated the modernized and rehabilitated Sidi R'cine Refinery (Algiers Refinery). The rehabilitation project, executed under an Engineering, Procurement, and Construction (EPC) contract by China Petroleum Engineering and Construction Corporation (CPECC), represents a milestone in Algeria's downstream strategy to eliminate fuel imports and transition to self-sufficiency.
Key Project Parameters
- Inauguration Date: February 21, 2019
- Location: Sidi R'cine, Baraki, Algiers (East Algiers, Algeria)
- EPC Contractor: China Petroleum Engineering and Construction Corporation (CPECC)
- Contract Signature Date: December 6, 2016
- Contract Value: Approximately 45 billion DZD (approx. €380 million / $410 million USD)
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Key Dignitaries Present at Inauguration:
- Abdelmoumen Ould Kaddour (CEO of Sonatrach)
- Mustapha Guitouni (Algerian Minister of Energy)
Capacity & Production Metrics
The expansion modernization successfully increased the overall crude refining throughput capacity by 35%:
Metric
Pre-Expansion (2016)
Post-Expansion (2019)
Relative Change
Total Crude Processing Capacity
2.70 million t/y
3.645 million t/y
+35%
Gasoline (Essence) Output
400,000 t/y
1,300,000 t/y
+225% (Tripled)
Diesel (Gasoil) Output
737,000 t/y
1,180,000 t/y
+60.1%
LPG (GPL) Output
88,000 t/y
270,000 t/y
+206.8%
Historical Note: Originally commissioned in 1964 with a capacity of 2.50 million t/y, the post-2019 capacity of 3.645 million t/y represents a cumulative 45.8% increase over its original design baseline.
Strategic Objectives and Impact
- Import Substitution: Prior to 2019, Algeria imported up to $2 billion USD of refined fuels annually. The startup of the upgraded Sidi R'cine facilities completely offset gasoline imports.
- Technical Modernization: The project integrated new refining units, including a reforming unit, an isomerization unit, and a hydrotreater to align the fuel specifications with international emissions standards.
