This paper presents the algebraic dynamic multilevel method (ADM) for compositional flow in three dimensional heterogeneous porous media in presence of capillary and gravitational effects. As a significant advancement compared to the ADM for immiscible flows (Cusini et al., 2016) [33], here, mass conservation equations are solved along with k-value based thermodynamic equilibrium equations using a fully-implicit (FIM) coupling strategy. Two different fine-scale compositional formulations are considered: (1) the natural variables and (2) the overall-compositions formulation. At each Newton's iteration the fine-scale FIM Jacobian system is mapped to a dynamically defined (in space and time) multilevel nested grid. The appropriate grid resolution is chosen based on the contrast of user-defined fluid properties and on the presence of specific features (e.g., well source terms). Consistent mapping between different resolutions is performed by the means of sequences of restriction and prolongation operators. While finite-volume restriction operators are employed to ensure mass conservation at all resolutions, various prolongation operators are considered. In particular, different interpolation strategies can be used for the different primary variables, and multiscale basis functions are chosen as pressure interpolators so that fine scale heterogeneities are accurately accounted for across different resolutions. Several numerical experiments are conducted to analyse the accuracy, efficiency and robustness of the method for both 2D and 3D domains. Results show that ADM provides accurate solutions by employing only a fraction of the number of grid-cells employed in fine-scale simulations. As such, it presents a promising approach for large-scale simulations of multiphase flow in heterogeneous reservoirs with complex non-linear fluid physics.@en