Summary:

Algeria and China have recently intensified their bilateral cooperation across key sectors through a series of major agreements and infrastructure deals.  

On 15 July, Algeria’s national energy firm Sonatrach awarded an $855 million contract to China’s Jereh Group for the construction of a gas compression station at the Rhourde Nouss gas field. The project will focus on the compression of natural gas extracted from both Rhourde Nouss and Gassi Touil fields, with the goal of enhancing production efficiency and increasing gas processing capabilities. 

Beyond hydrocarbons, China is also expanding its role in Algeria’s infrastructure development. On the same day, China and Algeria deepened their cooperation in this sector with the announcement of Algiers’s first metro line, led by China Railway Construction Corporation (CRCC). This project marks the first time a Chinese company has constructed a metro system in Algeria.  

Simultaneously, the two countries signed a framework agreement that seeks to boost bilateral cooperation in digital development and the promotion of tourism and hospitality products and services during a high-level forum held in Algiers.  

Outlook: 

China’s expanding engagement in North Africa, exemplified by its growing portfolio of infrastructure and energy projects in Algeria, Libya, Tunisia, Morocco and Mauritania, reflects Beijing’s broader strategic interest in deepening ties with the region.  

Algeria is showing signs of pursuing a diversified development strategy that extends beyond the hydrocarbon sector to encompass urban infrastructure, digital innovation, tourism, and, more recently, cooperation with China in the automotive industry. 

This multifaceted cooperation with China highlights Algeria’s ambition to strengthen its regional footprint and modernize its economy in line with a new strategic vision aimed at attracting foreign investment and enhancing geopolitical influence. The partnership with China is likely to serve as a model for further Sino-North African collaboration, contributing to regional stability and economic integration. 

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