• Chad and Algeria sign agreement to study a 20,000 bpd refinery project
• Chad continues to import large volumes of refined products despite crude output of up to 148,000 bpd
• Project remains at study stage with no timeline, site, or technical details disclosed

Chad and Algeria signed a framework agreement to study the construction of a 20,000 barrels-per-day refinery in Chad. The two countries formalized the deal during an official ceremony co-chaired by their heads of state in Algiers. The Algerian Press Service reported the signing on Wednesday, April 22.

The agreement forms part of a broader set of 26 bilateral cooperation deals signed during the official visit of Chad’s president to Algeria. These agreements cover multiple sectors, including energy, and aim to strengthen economic integration between the two countries.

The framework agreement establishes the basis for technical cooperation between the two countries. The agreement focuses on conducting preliminary feasibility studies for the refinery project.

However, authorities have not disclosed the project timeline, exact location, or technical specifications.

Chad has produced crude oil since the early 2000s, mainly from the Doba Basin. Official data shows that production ranges between 137,000 and 148,000 barrels per day. Crude oil accounts for about 70% of national exports.

However, the country has limited refining capacity. The Djermaya Refinery, commissioned in 2011 with China National Petroleum Corporation, remains the country’s only refinery.

The facility has a nominal capacity of 20,000 barrels per day but typically produces around 14,000 barrels per day, according to official sources.

As a result, Chad continues to import a significant share of its refined petroleum products. Data from the Banque de France shows that Chad’s petroleum imports reached 509.3 billion CFA francs (about $840 million) in 2024, down slightly from CFA521.5 billion (about $860 million) in 2023.

The agreement comes as Algeria expands its refining and petrochemical footprint in Africa. The country, through its state-owned company Sonatrach, is already building another refinery at the Dosso petrochemical complex in western Niger.

Abdel-Latif Boureima