Sonatrach signs agreements to enhance Algeria’s energy system

Sonatrach has signed agreements with various companies aimed at supporting projects in Algeria and boosting gas supplies to Europe.

Algerian state-owned Sonatrach has let a contract to a consortium between Baker Hughes and Tecnimont for a gas-boosting project for Hassi R’Mel gas field in Algeria.

The contract is part of a broader order awarded to a consortium between Baker Hughes and Tecnimont, part of 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 Hassi R’ Mel gas field, which lies about 550 km south of Algiers, and is the largest gas field in Algeria.

The technology is expected to play a central role in the project by boosting and stabilizing the pressure of natural gas and increasing production at site, Baker Hughes said in a release May 23.

The new gas-boosting stations are part of Algeria’s plan to strengthen its role in the global energy market. Currently, the country is a large gas supplier to Europe, particularly in Italy where Algeria represents the biggest single source of import, according to Bloomberg.

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.

MoUs

Sonatrach also signed memorandums of understanding (MoU) with ExxonMobil Corp. and Eni SPA.

The MoU with ExxonMobil aims to study existing opportunities to develop hydrocarbon resources in Ahnet and Gourara basins in Algeria.

Another MoU was signed with its Italian partner Eni to establish a program aimed at exploiting the hydrocarbon potential of the area of ​​interest covering the contractual perimeters of Zemoul El Kbar, Rourde El Louh – Sif Fatima and Rhourde Messaoud Nord.