Algeria has unveiled an ambitious $60 billion investment plan to expand its energy and mining sectors over the 2025–2029 period, Minister of Energy and Mines Mohamed Arkab announced at the 13th North Africa Petroleum Exhibition and Conference (NAPEC 2025) in Oran.
The programme aims to strengthen Algeria’s position as a leading global energy supplier while accelerating a shift toward cleaner, more sustainable production. According to reports from local media, the plan includes major investments in exploration, production, refining, petrochemicals, and renewable energy.
Arkab noted that 80% of the planned investment will focus on upstream oil and gas exploration and production, with the remainder directed toward refining and petrochemical projects.
In line with Algeria’s energy transition goals, the country is also developing projects to generate 3,200 megawatts (MW) of renewable energy as part of its long-term diversification strategy. The state-owned energy company Sonatrach aims to reduce gas flaring to below 1% by 2030, supported by a nationwide afforestation programme covering 520,000 hectares.
To boost industrial output, Algeria has earmarked $7 billion for new downstream projects designed to raise the conversion rate of hydrocarbons from 32% to 50% by 2030.
Key initiatives include:
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A 5 MMTPA refinery in Hassi Messaoud, expected to start operations in 2027.
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A naphtha cracking unit in Arzew, projected to produce 1.2 MMTPA of gasoline from March 2027.
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A fuel oil cracking facility in Skikda, scheduled to launch in January 2029, with an annual output of 1.75 MMTPA of diesel and 250,000 TPA of asphalt.
In a landmark move to attract international investment, Algeria’s parliament recently passed a new mining law allowing foreign ownership of up to 80% in mining projects — a significant policy shift aimed at diversifying the economy and enhancing global competitiveness.