Reuters reported that Algerian state energy company Sonatrach plans to increase its investment to USD 80 billion over the next 5 years as the OPEC member country seeks to expand its gas resource base and boost its refining and petrochemical capacity.

The planned investment is USD 12 billion more than previously announced by the North African producer which is a significant supplier of natural gas to Europe.

Mr Abdelhamid Zerguine CEO of Sonatrach said that the increase in the investment is mainly focused on the upstream to increase its refinery capacity and petrochemical base.

Algeria needs to import large quantities of refined fuel products such as gasoline and gasoil due to insufficient refining capacity while domestic demand is growing. In 2011, Sonatrach purchased around 1.3 million tonnes of fuel. Some of the USD 80 billion investment would be used to build new refineries but he did not give details.

Mr Zerguine said that Algeria has huge shale gas reserves. A preliminary study shows that Algeria has an estimated 600 trillion cubic feet of recoverable shale gas reserves. Algeria currently produces 1.2 million barrels of crude a day.

He said that we are producing up to the level of the OPEC quota referring to the quota set by the Organization of the Petroleum Exporting Countries.

Source - Reuters

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