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Sonatrach plans to more than double Arzew petrol output

Magic Algeria news desk
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An oil and gas field in the Algerian Sahara
An oil and gas field in the Algerian Sahara

A Chinese company holds the contract to build the new unit, with a completion period of 30 months.

Sonatrach plans to raise petrol output at its Arzew refinery in Oran wilaya from 550,000 tonnes to 1.2 million tonnes a year, Awras reported.

The increase would come through a new unit for hydrogen treatment and catalytic reforming.

Noureddine Daoudi, chief executive of Sonatrach, said in the company's 2025 annual report that the unit would treat 780,000 tonnes of heavy naphtha a year.

He said this would more than double petrol output at the refinery and strengthen national supply of refined oil products.

A Sonatrach statement said the project would help meet petrol needs in the western and south-western wilayas.

A Sonatrach statement issued when the contract was signed gave a different capacity, 738,000 tonnes of heavy naphtha a year. The annual report and that statement therefore give different figures for the same unit.

Sonatrach signed the contract on 17 November 2025 with Sinopec Guangzhou Engineering, a Chinese company. The site covers five hectares at the refinery, and the contract sets a completion period of 30 months.

The annual report says national fuel sales reached 76.1 million tonnes of oil equivalent in 2025, up 6% on the year before. The project comes as demand for energy on the domestic market rises.

The group's investments reached 1,078bn dinars (DZD), or 7.9bn dollars, in 2025, up 29% on 2024. Primary hydrocarbon output held steady at 193.7 million tonnes of oil equivalent.

The Arzew refinery, known as RA1Z, lies in the Arzew industrial zone in Oran wilaya. It started production in 1973 and was renovated in 2013.

Its refining capacity is 3.75 million tonnes a year, and it makes petrol, fuel oil, kerosene, liquefied petroleum gas, lubricating oils and bitumen. Its position near Arzew port connects it to transport and export networks.

Show sources (1)
  1. Awras
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