Algiers – Sonatrach has announced a new project to construct a processing unit at the Arzew refinery. The project, undertaken in collaboration with a Chinese company, aims to significantly boost Algeria’s gasoline production capacity.
The new unit will have an annual processing capacity of 738,000 tons of heavy naphtha. This will increase the refinery’s gasoline production from the current 550,000 tons to 1.2 million tons per year. Experts believe this development will strengthen supplies in the Algerian market, particularly in the western and southwestern regions, contributing to the stability of the domestic energy market.
The strategic project is valued at approximately $437.5 million (57 billion Algerian dinars). Sinopec Guangzhou Engineering will execute the project under an engineering, procurement, and construction (EPC) contract. The facility will be built on a 5-hectare area within the refinery complex and is expected to be completed within 30 months.
Sonatrach CEO, Noureddine Daoudi, emphasized the project’s strategic importance in enhancing national refining capabilities and increasing local added value. He noted that it aligns with the company’s plan to develop the refining system and ensure energy security for the nation.
The project is also expected to create direct and indirect employment opportunities during both the construction and operational phases. Furthermore, the integration of Algerian companies in the project’s execution will bolster local content and support the national industry.
The appointment of Daoudi as CEO last month underscores the government’s commitment to strengthening Algeria’s role as a key energy supplier. Wang Xiaowei, Vice President of Sinopec Guangzhou, highlighted the project as a significant step in deepening energy cooperation between Algeria and China. He affirmed the company’s commitment to executing the project according to international standards and within the stipulated timeframe, reflecting the strategic partnership between the two countries in the oil, gas, and refining sectors.
This project represents a significant investment in Algeria’s energy infrastructure and underscores the growing collaboration between Algeria and China in the energy sector.
