Algeria’s state energy company Sonatrach on Monday, November 17, signed a contract with Sinopec Guangzhou Engineering to build a heavy naphtha hydrotreating unit at the Arzew refinery in northwestern Algeria.
The turnkey engineering, procurement, construction, and commissioning (EPCC) contract was signed in Algiers by Slimane Slimani, Sonatrach’s vice president for refining and petrochemicals, and Wang Xiaowei, a vice president of the Chinese firm.
As per Ecofin Agency, the project is estimated at 57 billion Algerian dinars (approximately $437 million) and will occupy a five-hectare site, with a planned completion timeline of 30 months.
The new unit will process 738,000 tonnes of heavy naphtha annually and is expected to boost the refinery’s gasoline output from 550,000 tonnes to 1.2 million tonnes per year.
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Heavy naphtha hydrotreating uses hydrogen to remove sulfur, nitrogen, and other impurities from naphtha, preparing it for the catalytic reformer, which converts it into high-quality gasoline.
At the signing ceremony, Sonatrach CEO Noureddine Daoudi said the project is part of the company’s development plan to strengthen its refining capabilities.
Sonatrach operates five crude oil refineries with a combined capacity of 27 million tonnes per year, along with a 5-million-tonne condensate processing unit.
These facilities meet all of Algeria’s domestic fuel needs and enable the company to export surplus volumes, including naphtha, fuel oil, base oils, and aromatics.
Sinopec Guangzhou Engineering, a subsidiary of Sinopec Group, specializes in the design and construction of industrial oil and gas facilities.
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Image Credit: AL24 News
