Algeria: Chinese companies seek further oil and gas investment
On the 29th of September, Algerian government-friendly outlet AL24 news reported that Algerian Minister of State for Hydrocarbons and Mines, Mohamed Arkab, hosted Jason Zhen Liu, Vice President of the Chinese company “Jereh” for Oil and Gas Engineering, in a significant meeting that further signals deepening Sino‑Algerian energy ties.
The gathering, held in Algiers, focused on strengthening cooperation in engineering, field development, and natural gas processing, with an eye on expanded Chinese investment in Algeria’s hydrocarbon sector.
During the session, both sides reviewed their existing collaboration with the Algerian state-owned oil company Sonatrach and assessed ongoing projects, including construction, supply, and enhancement of processing capacities, to improve natural gas production efficiencies and strengthen Algeria’s hydrocarbon industry.
Arkab praised Jereh’s technical prowess and encouraged the firm to deepen its Algerian presence via participation in future deals. Liu, in turn, expressed Jereh’s strong interest in further investment, grounded in the strong bilateral relations between China and Algeria.
Jereh’s increasing presence in Algeria arrives at a moment when China’s influence in Algeria’s energy landscape is already taking new forms. Earlier in 2025, Sonatrach inked a high‑value contract with Chinese firm Sinopec for hydrocarbon development and exploration. That deal, worth some $850 million, marked a significant moment in Algerian-Chinese relations and highlighted the growing investment through state-subsidised Chinese companies in Algeria
Parallel to energy deals, China’s interest is branching outward into manufacturing and industry. For example, in Oran, a large tyre factory backed by Chinese investment was launched in 2025, with plans to produce millions of tyres annually and transfer advanced production technologies to local firms.
These expanding investments by Chinese firms in Algeria, from Jereh’s pursuit of deeper hydrocarbon involvement, to Sinopec’s current investments dating back to 2002, offer a clear reflection of China’s broader national ambitions under its Belt and Road Initiative. Rather than focusing solely on transport corridors or infrastructure financing, Beijing is embedding itself through long-term strategic influence across key sectors such as energy, manufacturing, and technology.
In Algeria, these ventures illustrate how such initiatives seek not just connectivity, but economic entrenchment, positioning Chinese companies as integral players in shaping the industrial and resource landscapes of partner nations. This type of investment provides Algeria with key infrastructure alongside the sharing of technology and points to an investment based relationship built on co-operation as opposed to a purely extractive based investment relationship.
However, the question for Algeria will be whether these collaborations deliver sustainable local outcomes and real long-term employment opportunities for its citizens, as opposed to turning the country into a conduit for Chinese capital, in which investment simply flows through Algeria into the hands of Chinese investors and large corporations, as opposed to directly benefiting the Algerian people.
AL24 News, Maghrebi
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