ALGIERS: Algeria will increase gas-oil imports this year because of scheduled maintenance and improvement works at its refineries, an Algerian energy official said.
The official said the Arzew refinery in the west of Algeria, partially shut-down for scheduled maintenance since September last year, was expected to fully re-open around Feb. 15.
That will be followed by a partial shutdown of the Skikda refinery, in the east of the country, for maintenance and work to increase capacity. The official did not give a date for the start of the work at Skikda.
The 335,000 barrel per day (bpd) Skikda refinery is Algerian's biggest. Trade sources said on Thursday the maintenance would run from March to possibly late 2012 and would reduce output to about 50 percent of capacity.
The pace of Algerian gas-oil imports has already risen this year to compensate for the reduced refining capacity.
During the second half of 2011, Algeria issued tenders to import around six cargoes of gas-oil a month. It tendered for eight cargoes, or 240,000 tonnes of gas-oil, for February, traders said. "Looks like they want some stock-building before it all kicks in," said one trader said, referring to the maintenance.
Speaking to reporters in parliament on Thursday, Algerian Energy and Mines Minister Youcef Yousfi said the partial shutdown at the Arzew refinery was the principal reason for shortages of fuel at some petrol stations. "The Arzew refinery will start operation in the next few days, God willing," he said.
"We have imported big quantities (of refined products). We have enough quantities now to meet needs."
Yousfi said there had also been problems transporting imported fuel to where it was needed, and that there had been "difficulties" with the Chinese firm operating a small refinery at Adrar, in the desert in southern Algeria. The refinery is owned jointly by China National Petroleum Corp and Algerian state energy firm Sonatrach.
Comments
Comments are closed for this article.