Hydrogen management is important in refineries in achieving cost competitiveness to produce clean and low-sulfur fuels. Other than minimizing the fresh hydrogen requirement, it is extremely important to reduce the compression work, required in any hydrogen allocation network (HAN). In this paper, a rigorous targeting methodology to minimize compression work in a HAN is proposed. The proposed methodology is algebraic and addresses flow, concentration, and pressure constraints in HAN. On the basis of the rigorous mathematical arguments, it has been proved that problem of minimizing compression work requirement in a HAN with multiple pressure levels can be broken into various subproblems having two pressure levels only and the compression work requirement for two pressure levels can be minimized via minimizing cross-flows between these pressure levels. The applicability of the proposed algorithm is demonstrated through illustrative examples.