The Algerian Sonatrach Group has signed a contract with the China Petroleum Engineering & Construction Corporation (CPECC) to establish new boosting units at the Alrar gas field in the Illizi basin. This project aims to counter the natural decline in pressure and maintain production levels at 10 million cubic meters per day.
The contract, valued at $210 million (around 7 billion Algerian dinars), was signed by Sonatrach CEO Rachid Hachichi and Zheng Xiang, CPECC’s Executive President in Algeria.
The project includes the 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. It also involves expanding the fire suppression network, enhancing intrusion detection systems, and implementing remote monitoring capabilities. Additionally, the project includes constructing an electrical substation and upgrading the current integrated control and safety system (ICSS).
The new installations are expected to be operational by the end of Q2 2027, with a completion timeframe of 32 months.
In his remarks, Mr. Hachichi emphasized that this project demonstrates Sonatrach’s “determination” and “commitment” to continue investing in upstream gas to meet the growing demands of the national market. He added that this initiative would help manage the natural depletion of the Alrar field, which has been operational since 1984, and sustain gas production levels.
Mr. Hachichi also highlighted that the project would enable Sonatrach to “fulfill its commercial commitments to international clients where Algeria plays a significant role.”
He expressed confidence in CPECC’s ability to complete the project within the established timelines and budget, while adhering to quality, safety, and environmental standards.
