R’Mel gas field : Baker Hughes bags gas-boosting project contract in Algeria

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Baker Hughes (NASDAQ: BKR), a leading energy technology company, has been awarded a significant contract for a gas-boosting project at the Hassi R’Mel gas field in Algeria, in collaboration with Tecnimont, part of the MAIRE technology and engineering group. This project marks a substantial step in enhancing the gas production capabilities of Algeria, directly impacting Europe’s energy security.

Contract Details and Project Significance

The contract was formalized in a signing ceremony in Algiers attended by Rachid Hachichi, CEO of SONATRACH, Lorenzo Simonelli, CEO of Baker Hughes, Alessandro Bernini, CEO of MAIRE, and H.E. Mohamed Arkab, Minister of Energy & Mines. Baker Hughes is tasked with supplying 20 compression trains that utilize Frame 5 gas turbine and BCL compressor technology. These units will be installed across three new gas boosting stations at the R’Mel gas field, located 550 km south of Algiers, which is the largest gas field in Algeria and one of the most substantial globally.

Baker Hughes wins new contract for a gas-boosting project at Algeria’s Hassi R’Mel gas field aimed at enhancing Europe's energy security and for supporting socio-economic growth.

Baker Hughes wins new contract for a gas-boosting project at Algeria’s Hassi R’Mel gas field aimed at enhancing Europe’s energy security and for supporting socio-economic growth.

Enhancing Algeria and Europe’s Energy Supply

Hassi R’Mel is a pivotal energy source for both Algeria and Europe, making this project crucial for stabilizing and increasing natural gas production. “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,” stated Lorenzo Simonelli. He further emphasized the project’s alignment with global energy mix diversification efforts aimed at achieving a lower-carbon economy.

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The technology provided by Baker Hughes is expected to play a vital role by boosting and stabilizing the pressure of natural gas at the site, thereby enhancing Algeria’s domestic energy system and its economic landscape as well as contributing to Europe’s energy security.

Strategic Energy Partnerships and Future Outlook

The Hassi R’Mel project is part of a broader strategic alliance between Algeria and Italy, including the recently signed agreements under the Mattei Plan, which fosters bilateral cooperation and provides financial support for Algeria’s gas production. This plan covers critical areas such as education, agriculture, health, water, and energy, promoting cooperation between Africa and Italy.

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The collaboration between Baker Hughes and Tecnimont under the auspices of SONATRACH and the Algerian government illustrates a robust commitment to advancing socio-economic development through enhanced energy infrastructure. This project not only supports Algeria’s strategy to amplify its global energy market presence but also secures a more stable energy supply for Europe.

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