Sonatrach Signs Contract with Chinese CPECC for New Boosting Units at Alrar Gas Field
On Thursday in Algiers, the Algerian Sonatrach Group signed a contract with the China Petroleum Engineering & Construction Corporation (CPECC) to establish new boosting units at the Alrar gas field, situated in the Illizi basin. This initiative aims to counteract the natural decline in pressure and maintain production levels at 10 million cubic meters per day.
Valued at $210 million, or approximately 7 billion Algerian dinars, the contract was signed by Sonatrach’s CEO, Rachid Hachichi, and Zheng Xiang, CPECC’s Executive President in Algeria.
The project includes engineering, procurement, and construction (EPC) of three compression trains, modifications to the inlet and separation manifolds, the installation of booster pumps, and connections to existing facilities. Additionally, it encompasses expanding the fire suppression network, enhancing intrusion detection systems, and implementing remote monitoring capabilities.
Furthermore, the contract involves constructing an electrical substation and upgrading the current integrated control and safety system (ICSS).
With a completion timeframe of 32 months, the new installations are expected to be operational by the end of Q2 2027.
In his address, Mr. Hachichi emphasized that this project reflects Sonatrach’s “determination” and “commitment” to continue investing in upstream gas to meet the increasing demands of the national market.
He added that this initiative will enable the group to manage the natural depletion of the Alrar field, which has been in operation since 1984, and sustain gas production levels.
Moreover, it allows Sonatrach to “fulfill its commercial commitments to international clients where Algeria plays a significant role,” he noted.
The CEO of Sonatrach also expressed confidence in CPECC’s ability to execute the project within the established timelines, budget, quality standards, and compliance with safety and environmental regulations.
