[Haichuan Overseas Engineering] Sinopec and Algeria’s national oil company reach a new partnership for a $450 million project to build a catalytic processing unit for heavy naphtha

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Sinopec has entered into a new partnership with Algeria’s national oil company to carry out a project worth $450 million for the construction of a catalytic processing unit for heavy naphtha. Local media reported that on November 17, Sonatrach and Sinopec Guangzhou Engineering Co., Ltd. held a signing ceremony for this project at the Arzew refinery. The signing ceremony was held at the headquarters of **Oil Company in Algeria. Dong Guangli, Chinese Ambassador to Algeria, Noureddine Daoudi, CEO of Algeria’s **Oil Company, along with senior representatives from both companies, were present to witness the event. The value of this project is approximately 57 billion Algerian dinars (about $450 million). According to a statement issued by Algeria’s Ministry of Oil, Gas and Mining, the project aims to enhance Algeria’s oil refining capacity. Sinopec Guangzhou Engineering Co., Ltd. will be responsible for the implementation of the project on a site of approximately five hectares within the Arzeh refinery complex, using an EPCC turnkey contract model that includes design, procurement, construction, and commissioning. The entire project construction period is expected to be thirty months. The facility has an annual processing capacity of 738,000 tons of heavy naphtha; once in operation, it will enable the refinery’s annual gasoline production to increase from the current 550,000 tons to 1.2 million tons. The statement emphasized that this significant progress will effectively enhance Algeria’s domestic gasoline production capacity, thereby better meeting the needs of all regions of the country, particularly those in the west and southwest. The report states that this partnership is an important part of Algeria’s oil companies’ plans to modernize and expand their refining capacity, and it aligns with the country’s overall strategic goals of increasing the added value of its oil and gas industry as well as enhancing energy security.