Baker Hughes wins Algeria compressor contract

Baker Hughes has been awarded a major contract from Algeria’s SONATRACH to supply 20 compression trains for three gas boosting stations within the Hassi R’Mel gas field in Algeria

The contract is part of an order awarded to a consortium between Baker Hughes and Tecnimont.

Located 550 km 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. The compressor trains, based on Frame 5 gas turbine and BCL compressor technology, are expected to play an important role in the project by boosting and stabilising 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.

Major gas supplier

The new gas-boosting stations are part of Algeria’s ambitious plan to strengthen its role in the global energy market and its commitment to natural gas as a key energy source for socio-economic development. In 2022, Algeria led Africa in natural gas production, reaching a record 132.7 billion cubic meters. According to Bloomberg NEF, 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.

The compressors will be manufactured 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,” said Lorenzo

Simonelli, chairman and CEO of Baker Hughes. “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.”