Algeria evaluates technical bids for three refineries

08 December 2015

The total value of the planned refineries could be as much as $6bn

Algeria is evaluating technical bids for the front end engineering design (Feed) for three green-field refinery projects, according to an industry source.

Bids were submitted in early November and evaluation began on 12 November according to the source.

The commercial tender is expected to be launched in early 2016.

Each of the refineries are expected to have a capacity of between 60,000 and 100,000 barrels a day and a budget of $2-3bn.

According to the source the companies that have submitted technical bids for the design work are:

As all of the refineries will be designed to similar specifications a single company will be asked to undertake the design work for all three refineries.

The refineries are intended to supply refined products to the domestic market, replacing imports.

They will be built at inland locations at Tiaret in the northwest, at Biskra in the northeast and at Hassi Messaoud near Algeria’s biggest oil field.

It is thought that the Tiaret and Hassi Messaoud refineries may be constructed first with the Biskra refinery being added in a second phase.

In March 2013 the government announced plans to build five new refineries, including the Tiaret, Biskra and Hassi Messaoud refineries.

In addition another refinery was planned to be built on the coast and another was planned to be built in the Ghardaia region, which is located in north-central Algeria.

It is thought that these two projects have been abandoned in order to focus on the refineries at Tiaret, Biskra and Hassi Messaoud.

Originally the refineries were due to be comissioned in 2017. Due to delays analysts now expect the facilities to come online at a later date.

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