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July 14, 2025 | 3 months ago
China's Jereh Oil&Gas wins $850 million contract
State-owned Sonatrach's project to build a gas compressor station in the Rhourde Nouss region in the Wilaya of Illizi has been awarded to the Chinese group Jereh Oil&Gas Engineering, worth $850 million.
"Jereh Oil & Gas Engineering will build a natural gas booster station on the Rhourde Nouss gas field in southeastern Algeria and upgrade the associated transmission pipelines," the Chinese group announced in a statement picked up by the British agency Reuters.
According to the same source, "Sonatrach will pay 629.1 million dollars and 29.4 billion Algerian dinars for the construction of the project", said Jereh, without giving further details on this EPC contract. The project in question is of vital importance to Sonatrach, given the region's contribution to the country's gas production. Its mission will be to reinforce the processing and compression capacities of the natural gas produced in this field and the adjacent Gassi Touil field, to improve their production efficiency and natural gas processing capacity.
According to the Sonatrach press release issued following Hachichi's visit to the region last March, "production capacity is set to increase with this future station, which will be able to compress a total production of 40 million m³ per day". This explains Sonatrach management's commitment to respecting the standards and deadlines for completion of the new compressor station.
In fact, over the last few years, the development of the gas fields in this region has been stepped up. It is now one of the country's most important gas sites. It is home to hydrocarbon processing and production units and oversees the operation of 17 fields, including El-Hamra, one of the country's historic hydrocarbon hubs.
In addition to strengthening and modernizing the region's basic infrastructure, Sonatrach is also focusing on developing exploration activities. The aim is to maintain the country's gas production at high levels. This is one of the reasons why Sonatrach has targeted its investments over the last three years to upstream gas. A sector has long been abandoned in favour of investment in oil production.
The changing needs of the global energy market, underpinned by both geopolitical conflicts and the shift towards clean energies, have dictated the country's new energy orientation. Two objectives have been set: to preserve Algeria's position on the European market, which is currently the main destination for Algerian gas, and to meet constantly evolving local demand. This situation explains Sonatrach's new approach, aimed at modernizing and strengthening its basic infrastructures and improving production.
July 14, 2025 | 
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