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- Algeria Petrochemicals Industry Update Quarter 3 2012
Algeria Petrochemicals Industry Update Quarter 3 2012
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BMI View: While some petrochemicals projects have experienced significant delays, we believe the
industry is on course for strong growth as new plants are opened and domestic demand for plastic
accelerates. The automotives industry is set for expansion while the construction industry should experience
a solid recovery, although overall economic growth will remain below par. However, there will need to be
greater focus on adding value to production if the domestic industry is to take full advantage of market
growth.
The Algerian government set out a US$80bn five-year investment budget in 2012, a US$12bn increase on
previous plans as a result of investment in the country's unconventional gas reserves. This will have an
inevitable knock-on effect on the petrochemicals industry, not only because there will be more gas available
for feedstock, but also because Sonatrach will have more money to invest in revamping and boosting its
petrochemicals industries.
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