Sonatrach has just awarded a $2.3bn (AD309.26bn) engineering, procurement and construction (EPC) contract to a consortium for gas-boosting work on a key field located in Algeria. The consortium, which comprises of Baker Hughes and Tecnimont, will be working on the Algeria Gas Field Project, the Hassi R’Mel gas field.
The gas field is located 550 kilometers south of Algiers and is deemed to be very pivotal to Algeria’s energy system and serves as a major source of energy for the continent of Europe. Approximately 188 million standard cubic meters of natural gas will be compressed per day by the turbo compressors. MAIRE has announced that a consortium composed by its subsidiary, Tecnimont (Integrated E&C Solutions), and Baker Hughes has been awarded an EPC contract by SONATRACH for the implementation of three gas boosting stations and the upgrading of the gathering system, located at the Hassi R’mel gas field, 550 km south of Algiers.
The Size of the Gas Field
The gas field is the largest in Algeria and one of the largest in the world. The overall contract value is about US$2.3 billion, of which US$1.7 billion belongs to Tecnimont.
The scope of the Algeria Gas Field Project project involves the implementation of a total of three gas boosting stations, including turbo-compressors that will compress about 188 million m3/d of natural gas.Additionally, the project entails the upgrading of the existing gas gathering system, which includes more than 300 km of flow lines connecting the wells.
Completion Date of the Algeria Gas Field Project
Completion of the Algeria Gas Field Project is scheduled within 39 months from the effective date of the contract. The boosting stations, along with the gathering system, will maintain the pressure of the gas as it travels through the installed pipelines, allowing it to continue flowing more efficiently and ensuring a reliable and uninterrupted supply of natural gas to Italy, and subsequently to European region as a whole.
With this Algeria Gas Field Project contract, MAIRE confirms its standing as a key engineering player in strategic energy projects, significantly contributing to the optimisation of the gas supply from Algeria, thus diversifying Italy and Europe’s energy sources.
This initiative tends to consolidate the relationships between the two sides of the Mediterranean, reinforcing EU-Africa cooperation.
Alessandro Bernini, who is the CEO of MAIRE group, commented: “After the award of the linear alkyd benzene (LAB) plant project in the industrial zone of Skikda last March, SONATRACH once again depends on the execution capabilities of our group. The development of this new gas crucial project will strengthen our relationship with SONATRACH and, most importantly, the bilateral relations that co-exist between both Italy and Algeria. The award of the Algeria Gas Field Project, in fact, represents a strong recognition of the entire Italian value chain, having Baker Hughes as our partner and, more broadly, an important economic impact on our country”.
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