China eyes Algerian oil and gas as it receives Tebboune in Beijing

The cordial relations between Algeria and China date back to the North African country’s fight for independence in the 1960s, during which Beijing provided strong support for Algeria's anti-colonial struggle against France. 

In 1962, as Algeria became independent from its European coloniser, foreign doctors left the country in droves, leading Algiers to ask its allies for assistance. The next year China dispatched its first medical assistance team to the North African country. Many Algerians remember being born to Chinese midwives in the 1960s, 1970s and 1980s — locals call those Algerians “Sinovas” (Chinese), as they were born with a “Chinese mother.” In 2020 some 60 years later, Algeria’s first personal protective equipment used to fight the COVID-19 pandemic arrived from China.

Adel Hamaizia is an associate fellow at The Royal Institute of International Affairs, Chatham House. Before the pandemic, there were around 250,000 registered Chinese workers on the continent of Africa. Around 90,000 of them, more than a third, were in Algeria, he told Al-Monitor. Although contracts dried up during the pandemic, Algeria has since been making more revenue from its oil and gas sector following the sanctioning of Russia by the West for its invasion of Ukraine in February 2022.

Algerian President Abdelmadjid Tebboune will visit Beijing on Monday to meet his counterpart Xi Jinping to further enhance their longstanding bilateral relationship and explore opportunities for deeper cooperation. The trip comes hot on the heels of an official visit to Russia by the Algerian president. 

ABRICS?

One of the main common denominators is BRICS, of which both China and Russia are members. Algeria announced its intention to join the emerging economies alliance comprising those two countries as well as Brazil, India and South Africa last November. The BRICS summit will be held in Johannesburg, South Africa, in August, and political leaders from the bloc will discuss new applications to join the group.

Ali Metwally is an economist and risk analyst specializing in the Middle East and North Africa. “The visits to China and Russia reflect Algeria's efforts to strengthen its ties with two of its key allies and two major global players,” he told Al-Monitor.

“Algeria's application for BRICS membership, along with its efforts to improve its infrastructure, boost trade and diversify its economy, signals some determination to position itself as a key player in the international arena," he added.

China and Russia are Algeria’s strategic allies and major partners in various sectors. For example, Russia has been the main arms supplier for Algeria, representing over 70% of the Algerian army’s weapons. China overtook France as the first investor in the country since 2012.

Infrastructure and energy investments

Alissa Pavia is the associate director of the Atlantic Council's North Africa Program. She told Al-Monitor, “In light of Morocco's participation in the Abraham Accords, Algeria has been actively acquiring military equipment from both China and Russia as a means to counterbalance the repercussions of Morocco's decision."

She went on, “A plausible scenario could involve an unofficial trilateral partnership wherein China and Russia supply military equipment to Algeria while Algeria turns a blind eye to Chinese and Russian expansionism.”

Furthermore, China has made significant investments in Algerian transportation and logistics infrastructure, such as the El Hamdania Sea Port Project in Cherchell and the Thenia-Bordj Bou Arreridj Double Rail Line. 

“These projects not only contribute to Algeria's economic development but also strengthen its connectivity and trade links with other regions,” Metwally said.

“Additionally, Algeria aims to boost its oil and gas production capacity, and China has been involved in several major oil and gas projects in the country. Chinese companies, including China National Petroleum Company, have been implementing projects with the collaboration of Sonatrach, like the Hassi Bir Rekaiz, Hassi Sbaa and Hassi Ilatou fields,” he said.

“These collaborations not only contribute to Algeria's energy sector but also foster technological exchanges and knowledge-sharing between the two countries.”

During his visit next week, Tebboune will seek an opportunity to demonstrate Algeria’s unwavering support for Xi and the Chinese Communist Party, Pavia said. Meanwhile, the Chinese will be eyeing Algeria’s hydrocarbons. Algeria has experienced a boost in revenue due to increased energy exports to Europe following the conflict in Ukraine, she noted.

Pavia explained, “Both countries are likely to explore avenues to enhance the trade of hydrocarbons from Algeria to China. While Algeria has previously played a relatively minor role as an oil and gas supplier to China, both nations are eager to increase these exports. "

She concluded, “With China's significant involvement in Algeria's infrastructure development, exemplified by projects like the El Hamdania Centre port project in the Cherchell region, Shanghai expects Algeria to reciprocate by boosting its oil and gas exports to China."