Wedoany.com Report-Nov. 18, Algeria’s state-owned energy company Sonatrach has signed a contract with Sinopec Guangzhou Engineering to construct a hydrotreating and reforming unit at the Arzew refinery. The project is designed to process heavy naphtha and enhance gasoline production capacity at the facility.

According to Sonatrach, the new unit will increase the refinery’s gasoline output from 550,000 tonnes per year (tpy) to 1.2 million tpy. The upgrade aims to strengthen domestic fuel supply and optimize the refinery’s operational efficiency.

The collaboration with Sinopec Guangzhou Engineering includes engineering, procurement, and construction services to ensure timely and effective project delivery. Once operational, the unit is expected to contribute to Algeria’s energy sector development by expanding refining capabilities and supporting the country’s growing fuel demand.

Sonatrach highlighted that the project aligns with its broader strategy to modernize and expand refining infrastructure, improve product quality, and ensure energy security. The upgraded refinery will also help meet regional fuel requirements while supporting sustainable industrial operations.

The contract reinforces ongoing cooperation between Sonatrach and international engineering partners in the energy sector, emphasizing the role of advanced technology in boosting production efficiency. By leveraging Sinopec’s technical expertise, Sonatrach aims to achieve reliable operations and higher output levels while maintaining industry standards for safety and environmental compliance.

This expansion at Arzew refinery marks a key step in Algeria’s efforts to enhance its downstream capabilities, reduce reliance on imports, and strengthen the domestic supply of high-quality gasoline. The new unit will be integrated into the existing refinery infrastructure to maximize productivity and operational flexibility.

With the hydrotreating and reforming unit, Sonatrach expects to meet both domestic and regional fuel demand more effectively, supporting Algeria’s long-term energy development plans and positioning the refinery as a competitive hub in the North African market.

The project also underscores the importance of international collaboration in advancing refinery technology and improving output efficiency. Sonatrach continues to pursue strategic partnerships to expand its refining portfolio, modernize facilities, and enhance production capacity to serve growing energy needs.

Upon completion, the Arzew refinery upgrade will significantly boost gasoline production and strengthen Algeria’s energy infrastructure, contributing to reliable fuel availability and supporting the country’s economic development goals.