Algeria is set to invest $7bn into new petrochemical and refining projects to move away from exporting raw hydrocarbons – aiming to produce quality chemical products instead, according to Zawya.

The change will allow Algeria access to more stable and profitable markets while also reducing dependence on foreign processing capabilities.

Algeria’s decision to branch out into the petrochemical sector is part of a broader initiative by the government to diversify its energy sector, with the aim of increasing value within the country and stimulating economic growth by developing advanced manufacturing techniques.

Efforts to develop the energy sector include Algeria’s new alkylbenzene production plant, a facility with a 100,000 tonne per year capacity that will supply domestic detergent and surfactant needs with a surplus for export. This plant is expected to play a huge role in reducing import costs and increasing expertise in advanced chemical production methods.

Another of Algeria’s projects includes a new liquid petroleum gas (LPG) condensate facility, which will produce 1,000 tonnes of LPG and 300 tonnes of condensate per day – serving industrial and household markets as well as improving local supply chains and minimising reliance on imports.

Lastly, the country is also set to construct a new polypropylene plant at a cost of $1.5bn at the country’s existing Arezew facility – A major industrial complex known primarily for its role in natural gas liquefaction and export.

The new plant will convert propane into 550,000 tonnes of polypropylene per year, providing support for various industries including the automotive sector, packaging and textiles, while also creating around 6,000 direct jobs – positioning Algeria as a leading plastic resin exporter to Europe and Asia, according to Inspectioneering.

The facility will also be a key part of Algeria’s strategy for economic strength and diversification – allowing the country to process raw materials domestically and minimising the effects of any oil price fluctuations globally.

Apart from more immediate goals, Algeria is also looking further ahead, with this first phase of a 10-year plan to develop the nation’s industrial economy only the beginning. According to Zawya, Algeria’s future plans include additional investments worth more than $25bn by 2030 – part of a long-term commitment to industrialisation and independence.