Sonatrach, Souakri Group Sign MoU to Advance Strategic Industrial Manufacturing and Water Technologies
The agreement lays the foundation for joint industrial projects spanning reverse osmosis membrane manufacturing, petrochemical value-added production, carbon capture technologies, and industrial waste recovery, as Algeria intensifies efforts to strengthen local manufacturing, technological sovereignty, and industrial integration.
By Dr. Hana Saada
ALGIERS – Algeria’s state-owned energy giant Sonatrach and Souakri Group have signed a memorandum of understanding (MoU) aimed at developing strategic industrial projects in advanced manufacturing, water desalination technologies, petrochemicals, and low-carbon solutions, marking another step in Algeria’s drive to deepen industrial integration and expand domestic production capabilities.
The agreement was signed on Thursday following a meeting chaired by Minister of State and Minister of Energy, Mines and Renewable Energies Mohamed Arkab, who received Abdennour Souakri, Chairman of Souakri Group, accompanied by a delegation of senior executives. The meeting was also attended by Sonatrach Chief Executive Officer Noureddine Daoudi, alongside senior officials from the ministry, Sonatrach and the Algerian Water Desalination Company (ADC).
According to the Ministry of Energy, the discussions focused on expanding strategic cooperation between Sonatrach and Souakri Group in high-value industrial sectors aligned with Algeria’s national strategy to strengthen local content, localise strategic industries, and reinforce industrial integration in line with the economic vision of President Abdelmadjid Tebboune.
Among the flagship projects presented by Souakri Group was a proposal to establish Algeria’s first industrial facility dedicated to manufacturing reverse osmosis membranes—the critical technological component used in seawater desalination plants. The project is expected to support Algeria’s ambitious national desalination programme while reducing reliance on imported strategic equipment.
The company also unveiled a portfolio of industrial and technological initiatives covering the production of desalination membranes, specialised chemicals used in water treatment, industrial maintenance services, technical training, and technology transfer, with the objective of establishing a fully integrated domestic value chain for the desalination industry.
In the petrochemical sector, Souakri Group presented plans to manufacture formaldehyde using methanol supplied by Sonatrach, a project designed to increase the value-added processing of Algeria’s petrochemical resources and expand their industrial applications.
Additional proposals included circular economy initiatives aimed at recovering and valorising waste generated by the oil and gas industry, as well as projects focused on carbon capture, utilisation and storage (CCUS) to support Algeria’s efforts to reduce industrial carbon emissions and promote sustainable manufacturing.
Addressing the meeting, Arkab reaffirmed that strengthening domestic industry and increasing local content remain central pillars of the government’s industrial strategy.
He stressed the importance of building industrial partnerships capable of transferring advanced technologies and localising strategic manufacturing, particularly in sectors linked to water security and energy security, while generating skilled employment opportunities and enhancing the competitiveness of the national economy.
The memorandum of understanding was formally signed by Farhat Aounoughi, Sonatrach’s Vice President for Business Development and Marketing, and Abdennour Souakri, Chairman of Souakri Group.
The agreement establishes a framework for industrial and technical cooperation in several strategic areas, including reverse osmosis membrane production, formaldehyde manufacturing, industrial waste recovery, carbon capture technologies, and the exchange of technical, commercial and legal information required to conduct joint feasibility studies before progressing to project implementation in accordance with Algerian legislation.
Both parties concluded the meeting by reaffirming their commitment to advancing innovative industrial projects capable of strengthening Algeria’s manufacturing ecosystem, reinforcing industrial and technological sovereignty, and supporting the country’s broader economic diversification strategy through productive investment, technology transfer, and sustainable local value creation.
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