Algeria’s state-owned energy giant, Sonatrach, has signed a significant contract with Sinopec Guangzhou Engineering Co. Ltd. of China for the construction of a catalytic reforming unit at the Arzew refinery in Oran province. The agreement, finalized at Sonatrach’s headquarters in Algiers, marks a crucial step in enhancing Algeria’s refining capabilities.
The contract was signed by Souleymane Souleymani, Sonatrach’s Vice President for Refining and Petrochemicals, and Wang Xiaowei, Vice President of Sinopec Guangzhou Engineering, in the presence of Algeria’s Minister of Hydrocarbons and Mines, Mohamed Arkab, and Sonatrach’s CEO, Toufik Hakkar, along with senior executives from both companies.
Under the terms of the agreement, Sinopec Guangzhou Engineering will undertake the engineering, procurement, construction, and commissioning (EPCC) of the naphtha catalytic reforming unit. The project is slated for completion within a 30-month timeframe.
The new unit, covering an area of 5 hectares within the Arzew refinery complex, represents an investment of DZD 57 billion. Upon completion, the unit will possess a processing capacity of 738,000 tons of heavy naphtha per year. This enhancement will significantly boost gasoline production at the Arzew refinery, increasing its output from 550,000 tons to 1.2 million tons annually. This will contribute substantially to the country’s overall gasoline production capacity.
During the signing ceremony, CEO Hakkar emphasized that this project aligns with Sonatrach’s strategic development program aimed at expanding its refining capacity. He highlighted the project’s strategic importance in bolstering Algeria’s energy independence. The project, expected to be commissioned by May 2028, will also eliminate the need to transport gasoline by sea from the Skikda refinery to Arzew.
Furthermore, the project will generate both direct and indirect employment opportunities during the construction and operational phases. It also prioritizes the inclusion of local subcontractors, fostering local content development. The Vice President of Sinopec Guangzhou Engineering affirmed that this project represents a further deepening of energy cooperation between Algeria and China.
