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Sonatrach awards EPC contract to Samsung and Tecnicas Reunidas for the construction of the Hassi Messaoud refinery

Sonatrach of Algeria has tasked a joint venture of Técnicas Reunidas SA of Spain and South Korea’s Samsung Engineering with a $3.7 billion engineering, construction, and procurement (EPC) contract for this upcoming grassroots refinery.  Tecnicas Reunidas is the leader of this joint venture in construction with a 55% interest.

This contract will cover the construction of this new refinery as well as individual units and required auxiliary services over approximately 52 months.  To be included with this build are a crude distillation unit, hydrocracker, gas oil hydrodesulfurizer, naphtha hydroprocessing unit, catalytic reformer, isomerization unit, solvent deasphalting unit, and associated infrastructure.  An amine recovery unit, a sulfur recovery unit, and a wastewater treatment plant will also be constructed in order to meet environmental standards.  Upon completion, the grassroots Hassi Messaoud refinery will have a proposed capacity of 5 million tons per year and an anticipated startup date in 2024.

In addition to the Hassi Messaoud refinery, Sonatrach has been planning an additional two 5 mmtpy refineries in Biskra and Tiaret for the processing of Algerian crude.  However, the Biskra refinery project has been placed on hold for the time being.  These refineries are part of Sonatrach’s plan to conform to Euro 5 quality standards, meet domestic demand, and to improve its export market.  

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