Algeria Emerges as Key Pillar in China’s Energy Security Strategy
BY Dr. Hana Saada
China is rapidly expanding its footprint in North Africa, particularly in Algeria, as part of a strategy to secure alternative energy supplies and diversify its global supply chains amid geopolitical tensions and disruptions to shipping routes, according to the South China Morning Post.
The report identifies Algeria as a central node in this approach, given its role as a major supplier of oil and gas and its deepening ties with Chinese firms involved in multi-billion-dollar investments in infrastructure and energy.
Cooperation between the two countries includes long-term partnerships, notably a production-sharing agreement between Sonatrach and Sinopec, as well as a naphtha processing unit project at the Arzew refinery in north-west Algeria valued at around $437 million.
The paper notes that these projects reflect a broader Chinese strategy to strengthen investment across North Africa, with Algeria positioned as a key short- to medium-term supplier due to its hydrocarbon reserves and ability to support markets during periods of disruption.
Analysts cited in the report say Algeria could also play a role in providing hydrocarbon storage capacity and stabilising global supply flows, as China seeks to reduce reliance on strategically sensitive routes such as the Strait of Hormuz, through which a significant share of its seaborne oil imports passes.
Beyond conventional energy, Algeria is also seen as a potential platform for industrial cooperation and technology transfer, in line with Beijing’s effort to integrate energy security with low-carbon transition objectives.
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