The Algerian Sonatrach Group has signed a contract with the China Petroleum Engineering & Construction Corporation to establish new units to enhance the pressure at the Alrar gas field located in the Illizi Basin, southern Algeria, at a cost exceeding 210 million USD.

This project, signed by Sonatrach Chairman and CEO, Rachid Hachichi, and the CEO of the Chinese Petroleum Engineering Company in Algeria, Cheng Xiang, aims to compensate for the natural decline in production at the Alrar field and maintain it at 10 million cubic meters per day.

According to the provided explanations, the contract is valued at 210 million USD, including 7 billion Algerian dinars, and the completion period is estimated to be 32 months, with the project expected to enter service by the end of the second quarter of 2027.

The contract includes the construction of three compression units, the modification of liquid collection and separation complexes at the liquid receivers’ entry points, the installation of booster pumps, the connection of the units to the existing facilities and infrastructure, the expansion of the firefighting network, and the implementation of intrusion detection and remote monitoring systems.

The project also includes the construction of a substation and the rehabilitation of the existing integrated monitoring and safety system.

In his remarks about the project, Hachichi stated that this project represents “Sonatrach’s determination and commitment to continue its investment in the upstream segment of gas projects to meet the growing demand in the national market.”

He affirmed that “it will enable Sonatrach to manage the natural decline in production at the Alrar gas field, which has been operational since 1984, and continue its production. It will also allow Sonatrach to fulfill its commercial commitments to its customers in the international market, where Algeria plays an important role.”