Chinese Energy Giant Sinopec Secures Major Algeria Shale Gas Deal Worth Hundreds of Millions
Chinese state-owned energy giant Sinopec has signed a groundbreaking contract with Algeria’s Sonatrach for exploration and development of the Guern El Guessa II block, marking a significant expansion of China’s presence in North African energy markets. The agreement includes exclusive cooperation rights for future unconventional resource development in adjacent HBH and EB blocks.
The GEG block spans 36,000 square kilometers in Algeria’s Gourara-Timimoun basin and contains both proven conventional gas reserves and strong shale gas potential. Sinopec, which operates China’s largest domestic shale gas project at the Fuling field, plans to pursue a full-cycle upstream strategy in Algeria.
This latest deal builds on an $850 million agreement signed in February between Sinopec and Sonatrach to jointly develop the Hassi Berkane-North field. The company views these projects as a new phase in its overseas unconventional energy expansion and expects them to boost the international reach of China’s energy technology and service supply chain.
Source: upstreamonline.com
