China’s Zhongman secures first African gas block in Algeria

China’s Zhongman secures first African gas block in Algeria

China’s independent Zhongman Petroleum & Natural Gas Group (ZPEC) has won the tender to explore and develop the Zerafa II natural gas block in central Algeria, its first hydrocarbon project in Africa, according to Reuters. Awarded by Algeria’s National Agency for the Valorisation of Hydrocarbon Resources (ALNAFT), the 38,700 km² block sits within the prolific Gourara–Timimoun gas basin.

ZPEC reportedly outbid international majors such as TotalEnergies and an ENI–Equinor consortium. Although the final production-sharing agreement has yet to be signed and investment figures are undisclosed, this move marks a significant milestone for the Shanghai-listed firm. Already active in China’s Xinjiang region and in Kazakhstan and Iraq, ZPEC is now expanding its footprint into Africa’s energy sector.

The award reflects Algeria’s openness to Chinese investment amid shifting global energy alliances. For China, the deal enhances its strategic energy diversification. Regionally, it signals growing Chinese influence across Africa’s hydrocarbon markets, challenging the dominance of Western and OPEC-linked players.

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