Baker Hughes Co. has secured what it calls a major contract from Algerian state-owned oil and gas company Sonatrach for a gas-boosting project in the country’s Hassi R’Mel gas field.
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 gas field.
Located 342 miles (550 kilometers) south of Algiers, Hassi R’ Mel is the largest 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 said in a news release.
Baker Hughes’ proven 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 company said.
The contract is part of a broader order awarded to a consortium between Baker Hughes and Tecnimont, part of technology and engineering group MAIRE.
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.
“Today’s announcement marks a notable milestone in our historical collaboration with SONATRACH for key energy projects in Algeria that have played a crucial role in supplying reliable energy to Europe,” Baker Hughes Chairman and CEO Lorenzo Simonelli said. “We have long believed that it is critical to increase gas within the overall global energy mix to help achieve a lower-carbon economy. This project helps to solve for energy producers’ multi-faceted challenge of driving sustainable energy development as energy demand increases. We are proud to support such a critical energy project in partnership with Tecnimont”.
Algeria became the second-largest 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, according to the release, citing Bloomberg NEF.
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, according to the release. The Mattei Plan seeks to promote cooperation between Africa and Italy along five main policy pillars: education and training, agriculture, health, water and energy.
Centrifugal Compressors for Aramco
In April, Baker Hughes received an order from Worley, for and on behalf of Aramco, to supply gas technology equipment for the third phase of Saudi Arabia’s Master Gas System project. The award was booked in the first quarter, according to an earlier news release.
Baker Hughes will supply 17 pipeline centrifugal compressors driven by state-of-the-art aeroderivative gas turbines for Saudi Arabian Oil Co. (Aramco)’s project. The new 4,000-kilometer pipeline is “vital to the Kingdom’s energy transition, with expectations to increase domestic gas distribution and contribute to a reduction of carbon emissions and oil consumption,” the company said.
The order follows the delivery of 18 Baker Hughes centrifugal compressors driven by aeroderivative gas turbines for Phase 1 and 2 of the Master Gas System projects executed by the company.
“For over 30 years, Baker Hughes has been a trusted partner in natural gas operations, and our long-standing partnership with Aramco is helping to reduce emissions by transitioning to gas,” Simonelli said. “Baker Hughes solutions are advancing the efficient use of natural gas, and we are proud to be delivering a reliable system to transport and distribute gas across Saudi Arabia”.
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