Sonatrach Expands Continental Footprint with Strategic Agreements at IATF 2025
✍️ BY: Dr. Hana Saada
Algiers – September 2025 – At the 4th Intra-African Trade Fair (IATF 2025), Algeria’s state-owned energy giant Sonatrach reinforced its continental leadership by sealing a landmark memorandum of understanding (MoU) with the Kenya National Oil Corporation, while simultaneously announcing major domestic investments worth 60 billion dinars in hydrocarbon transport infrastructure.
The MoU, signed in the presence of Sonatrach’s CEO, Rachid Hachichi, and his Kenyan counterpart, Leparan Gideon Ole Morinto, establishes a broad framework for cooperation encompassing joint ventures in hydrocarbon exploration and production, the supply of liquefied petroleum gas (LPG) and petroleum products to the Kenyan market, and the development of a commercial platform for LPG, lubricants, and petrochemicals. It further includes studies to promote LPG as a sustainable automotive and domestic fuel, along with training programs designed to enhance Kenyan expertise through Sonatrach’s institutional know-how.
In his statement, Hachichi stressed that the accord embodies Algeria’s commitment to building an integrated African energy ecosystem. “This agreement is a qualitative leap in our partnership with Kenya, reflecting our conviction that African integration and cooperation are the safest path to shared, sustainable development,” he declared, adding that the initiative aligns with the intergovernmental memorandum signed between Algiers and Nairobi to strengthen bilateral cooperation in oil, gas, and energy.
Echoing this perspective, Morinto emphasized that the collaboration will marry Algeria’s vast technical experience with Kenya’s growing energy needs, paving the way for mutually beneficial projects in exploration, refining, distribution, and storage. “This is not just a bilateral partnership, but a step within a broader vision of African cooperation that IATF 2025 has made possible,” he noted.
Parallel to this continental breakthrough, Sonatrach concluded three strategic domestic contracts valued at 60 billion dinars. These agreements—signed with ENAC-Cosider Canalisation, GCB Spa-Sarpi SPA, and Maghreb Pipe Industries (MPI)—target the expansion of key pipelines, the modernization of oil transport networks, and the substitution of imports through local manufacturing of advanced fiberglass-reinforced epoxy pipes. Hachichi characterized these as “structuring contracts” that consolidate Algeria’s strategic autonomy, safeguard energy supply, and enhance national expertise in industrial production.
The projects include the expansion of the GG1 42 gas pipeline from Hassi R’mel to Medjedel to secure natural gas for ten central wilayas and six power plants, the replacement of critical segments of the OH1 30 oil pipeline in Illizi with high-security epoxy conduits, and the production of 163 km of new pipeline by MPI within 15 months. These efforts, according to Sonatrach officials, are a tangible advancement in Algeria’s substitution strategy, local value-chain development, and gradual march toward industrial sovereignty.
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