Sonatrach Signs Major Contract with Baker Hughes/Nuovo Pignone International Srl & Tecnimont for Hassi R’Mel Gas Field
✏️ BY: Dr. Hana Saada
Algiers, Algeria | May 23, 2024 — On May 23rd, Sonatrach, the Algerian national oil and gas company, signed a significant contract with the consortium of Baker Hughes, Nuovo Pignone International Srl, and Tecnimont S.p.A. This contract marks a crucial development for Phase III – Stage 2 of the Boosting Installations at the Hassi R’Mel gas field, the largest natural gas field in Algeria and Africa.
Project Scope and Objectives
The primary objective of this contract is to counteract the natural depletion of the Hassi R’Mel gas field and ensure the maintenance of the production plateau at 188 million Sm³ per day. The project involves the EPC (Engineering, Procurement, and Construction) of three compression stages located in the central, northern, and southern parts of the field. Specifically, it includes:
– Installation of 20 turbo-compressors.
– Modification of the existing gas collection network.
– Construction of three condensate demercurization units.
– Standardization of treatment trains at the Hassi R’Mel production units.
– Integration of utility tie-ins (firewater network, instrument air, service air, diesel system, flare system, and nitrogen system).
Project Timeline
The project is set to be completed in phases, with the following deadlines:
– Boosting Station Centre: 33 months, with commissioning in October 2026.
– Boosting Station North: 36 months, with commissioning in January 2027.
– Boosting Station South: 39 months, with commissioning in April 2027.
Strategic Importance
The completion of this project is crucial for maintaining gas production levels, meeting domestic market demands, and fulfilling Sonatrach’s international commercial commitments. The enhancements will play a vital role in sustaining the operational efficiency and output of the Hassi R’Mel gas field.
Although the financial terms of the contract were not disclosed, this development represents a significant step in bolstering Algeria’s energy infrastructure and ensuring long-term stability in gas production.
Sonatrach’s commitment to advancing its facilities and maintaining production levels is evident through this collaboration with internationally recognized partners, positioning Algeria to continue as a key player in the global energy market.
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