SONATRACH awarded Baker Hughes a contract for enhancing gas production at the Hassi R’Mel natural gas field in Algeria. This contract forms part of a larger order granted to a consortium comprising Baker Hughes and Tecnimont, a division of the technology and engineering group MAIRE.
Baker Hughes’ awarded scope includes the supply of 20 compression trains based on Frame 5 gas turbine and BCL compressor technology, which will be installed across three gas boosting stations within the Hassi R’ Mel natural gas field.
Located 550 km south of Algiers, Hassi R’ Mel is the largest natural gas field in Algeria and one of the largest in the world, representing a key source of energy supply for Algeria and Europe. Baker Hughes’ technology solutions are expected to play a central role in the project by boosting and stabilizing the pressure of natural gas and increasing production at site, which will enhance Algeria’s domestic energy system and economy as well as Europe’s energy security.
The new gas-boosting stations are part of Algeria’s ambitious plan to strengthen its role in the global energy market and its commitment to natural gas as a key energy source for socio-economic development. According to Bloomberg NEF, Algeria became the second-largest natural gas supplier to Europe in 2023, further strengthening the country’s role in enhancing the energy security of the continent, particularly in Italy, where Algeria represents the biggest single source of import.
The Hassi R’ Mel Project is part of a broader strategic collaboration between Algeria and Italy, which includes recently signed agreements to foster bilateral cooperation and provide financial support for Algeria’s gas production as part of the Mattei Plan.
The Mattei Plan seeks to promote cooperation between Africa and Italy along five main policy pillars: education and training, agriculture, health, water, and energy. Packaging of the compressor trains, as well as manufacturing of the compressors and testing of the trains, will take place at Baker Hughes’ facilities in Italy.
Lorenzo Simonelli, Chairman and CEO of Baker Hughes, emphasised the importance of boosting gas production to promote a shift towards a lower-carbon economy. He stated that the project addresses the challenge faced by energy producers in driving sustainable energy development amid rising energy demand.
