Blast Levels Algerian LNG Refinery

A massive blast destroyed all three liquefied natural gas (LNG) production units of Algeria's largest refinery at Skikda port yesterday afternoon killing at least seven people and injuring 72 more. Energy Minister Chakib Khelil confirmed that all the natural gas units would need to be rebuilt as they are seriously damaged. The blast halted Skikda gas exports but has not affected the oil installations of the refinery. Khleil also stated that at this stage the cause of the blast was unknown.

Algerian gas facilities had suffered from accidents in the past and were recently under a process of modernisation that was aimed at changing some of the outdated equipment. Skikda is Algeria's largest port and handles the bulk of the country's crude, refined and petrochemical exports. Algeria exports 60bn cubic metres of natural gas per year, mainly to Europe and the US.

Skikda also exports 335,000 barrels per day (bpd) of crude oil and accounts for 84% of the 14mn tons of refined products that Algeria produces annually.