Algeria’s state-owned energy company Sonatrach has signed a
contract with China’s Sinopec Guangzhou Engineering to build a
catalytic reforming unit for heavy naphtha at the Arzew refinery in
Oran Province, western Algeria, Asharq Business
reported on November 18, citing a statement from the Ministry of
Energy and Mines.
The project is valued at approximately DZD 57bn ($450mn).
According to the ministry, the agreement aims to strengthen
Algeria’s refining capabilities, increase gasoline production, and
meet rising domestic demand, particularly in the country’s western
and southwestern regions.
As per the terms of the contract, Sinopec will implement the
project through an engineering, procurement, construction, and
commissioning (EPCC) framework within the Arzew refinery complex.
The project is expected to be completed within 30 months,
reflecting a major step in Algeria’s efforts to modernise its
refining sector.
Once operational, the new unit will have an annual production
capacity of 738,000 tonnes of heavy naphtha. This is expected to
boost gasoline output at the Arzew refinery from 550,000 tonnes to
1.2mn tonnes per year. The supply will enhance domestic consumption
and reduce dependency on imports.
Sinopec Guangzhou Engineering is a major partner of Sonatrach.
The company is experienced in a wide range of fields, including
petroleum refining, petrochemicals, oil and gas
storage/transportation, and emerging areas like green hydrogen. The
company recently secured a convertible Front-End Engineering Design
(FEED) contract for the massive Yanbu Green Hydrogen Project in
Saudi Arabia.
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