The CEO of Sonatrach Group, Noureddine Daoudi, highlighted the importance of petrochemical transformation in Algeria, in line with the directives of the President of the Republic, Abdelmadjid Tebboune, aimed at making petrochemicals a strategic lever of sovereignty. The official made the remarks in an interview with APS, on the occasion of the double anniversary of the creation of the General Union of Algerian Workers (24 February 1956) and the nationalization of hydrocarbons (24 February 1971).
Daoudi said that for Sonatrach, the goal is to shift from an upstream-dominated model toward an integrated model where petrochemicals serve as a strategic lever of industrial sovereignty, economic diversification, and the creation of local added value, while consolidating Algeria’s role as a leading energy player at both regional and Euro-Mediterranean levels.
He further emphasized that the sector’s projects are expected to have a significant impact on the national economy, attract foreign direct investment (FDI), create direct and indirect employment, and support small and medium-sized enterprises, notably in plastics processing. The projects are also set to valorize hydrocarbons and meet domestic demand for petrochemical products, which are currently imported.
As part of an ambitious structured program dedicated to refining and petrochemicals, Sonatrach has launched several “world-class” projects aimed at reducing imports and achieving self-sufficiency.
Among the projects currently under construction, carried out using the group’s own resources, are the MTBE (Methyl Tert-Butyl Ether) complex in Arzew, producing a gasoline formulation additive that is currently imported; the LAB (Linear Alkyl Benzene) complex in Skikda, which supplies the detergent and cleaning products industry; as well as the STEP/PDH PP complex in Arzew dedicated to polypropylene production.
Regarding partnerships, Sonatrach is collaborating with the Turkish company Ronesans for a PDH PP project currently under construction in Turkey, the official noted, adding that the group continues to discuss and review additional petrochemical projects related to plastic and methanol production with various potential partners.
In this regard, Daoudi stated that the MTBE project, launched in 2022, reached an 86% completion rate as of February 2026, with a progressive entry into production and a gradual start-up of units projected for June 2026.
Concerning Sonatrach’s recent international partnerships, particularly within the framework of the 2024 Bid Round, the group’s CEO said that 2025 was marked by the signing of eight hydrocarbon agreements under Law 19-13 with major global companies, including five contracts through the competitive process launched by ALNAFT.
Daoudi concluded by stating that “Sonatrach is currently discussing with numerous companies, including major ones, to finalize new hydrocarbon deals under the memoranda of understanding signed in 2024 and 2025.”
