Chinese energy giant Sinopec is deepening its footprint in Africa after signing a major shale gas exploration and development deal with Algeria’s state oil firm, Sonatrach.

The new agreement gives Sinopec rights to explore and develop the Guern El Guessa II (GEG) block — a massive 36,000 square kilometre area located in Algeria’s southwest. The region already holds confirmed natural gas reserves, but Sinopec is particularly interested in its shale gas potential, as the company looks to expand its unconventional energy portfolio beyond Asia.

In addition to the GEG block, Sinopec also secured exclusive cooperation rights for future shale gas developments in two other areas: the HBH and EB blocks. All three are located in Algeria’s key hydrocarbon-producing zones.

The deal marks a major step in Sinopec’s international energy strategy, with the company aiming to export its upstream technologies and expand its global service supply chain. Sinopec is no stranger to shale gas — it operates the Fuling field in China’s Sichuan Basin, one of the country’s largest and most successful shale gas projects to date.

According to Sinopec, this new partnership with Algeria will help accelerate its global ambitions in unconventional energy, while supporting Algeria’s efforts to unlock more value from its natural gas resources.

This latest move follows an earlier $850 million joint venture agreement signed in February between Sinopec and Sonatrach to develop the Hassi Berkane-North field, another key gas asset in the country.