Africa Focus

Africa advances downstream oil integration plan

0/0
New roadmap targets Africa’s oil value chain growth

High-level discussions in Algeria between  Mohamed Arkab, Minister of Hydrocarbons, and Anibor Kragha, Executive Secretary, African Refiners and Distributors Association (ARDA), have advanced a new roadmap for strengthening Africa’s downstream oil sector. 

The talks focused on expanding refining capacity, petrochemicals production and LPG infrastructure to support greater continental energy integration and reduce reliance on imported petroleum products.

The engagement also included executives from Sonatrach and Naftal, with emphasis on harmonised regulatory frameworks, industrial safety, environmental standards and investment attraction across African markets.

A key outcome was renewed alignment on shifting Africa from a raw resource export model toward value-added industrial development. 

ARDA called for stronger cross-border cooperation and shared infrastructure, while Algeria presented its downstream expansion strategy as a potential model for replication across the continent.

Algeria is currently implementing a $7 billion downstream investment programme as part of a broader $60 billion hydrocarbon development plan through 2030. 

The strategy aims to raise hydrocarbon conversion rates from 32 per cent to 50 per cent, supported by refinery upgrades, petrochemical expansion and new processing facilities.

Major projects include refinery modernisation at Arzew and Skikda, alongside large-scale petrochemical developments such as polypropylene and linear alkylbenzene plants. 

Algeria also continues to expand LNG and LPG capacity, reinforcing its role as a regional energy hub.