Algiers – Sonatrach, Algeria’s state-owned oil and gas company, has signed a significant partnership agreement with Sinopec Guangzhou Engineering Co. Ltd. of China. The deal, finalized on Monday, November 17, 2025, aims to construct a cutting-edge heavy naphtha catalytic processing unit at the Arzew refinery in Oran.
The signing ceremony took place at Sonatrach’s headquarters in Algiers, in the presence of the Minister of State, Minister of Hydrocarbons and Mines, Mohamed Arkab, the Chinese Ambassador to Algeria, Dong Guangli, and Sonatrach CEO, Noureddine Daoudi, along with senior officials from both organizations.
The project, a key component of Algeria’s strategy to bolster national refining capabilities, will be executed by Sinopec under an Engineering, Procurement, Construction, and Commissioning (EPCC) contract. The unit will be built within the refinery’s perimeter, covering an area of approximately 5 hectares, with a projected completion timeline of 30 months.
This new unit, boasting an annual production capacity of 738,000 tons of heavy naphtha, is expected to significantly increase gasoline production at the Arzew refinery, from 550,000 tons to 1.2 million tons per year. This expansion will contribute to:
- Strengthening national energy security
- Reducing gasoline imports
- Improving fuel supply to western and southwestern regions of Algeria
Sinopec Guangzhou, a subsidiary of the global Sinopec Group, brings extensive expertise in engineering and construction projects within the oil, gas, and petrochemical sectors. This makes them a reliable technical partner for strategic projects that add significant value.
The project aligns with Sonatrach’s broader initiatives to modernize and expand Algeria’s refining capacity, in line with the hydrocarbon sector’s objectives to increase domestic value-added processing of petroleum products, support the national economy, and boost exports. This represents another step forward in developing Algeria’s energy industry, enhancing the country’s refining capabilities, and meeting the growing demand for fuel.
