Baker Hughes Supports Gas-Boosting Project in Italy, Algeria

SONATRACH granted a major supply contract to Baker Hughes for a project to increase gas production, supporting a stable gas supply chain between Europe and Algeria. The contract is part of a previous award given to a consortium of Baker Hughes and Tecnimont—a subsidiary of the engineering group MAIRE. The contract’s scope includes 20 compression trains based on the Frame 5 gas turbine and BCL compressor technology. These trains will be installed across three gas-boosting stations in the Hassi R’Mel gas field.

“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 energy producers’ multi-faceted challenge of driving sustainable energy development as energy demand increases.”

The Hassi R’Mel gas field is located 550 km south of Algiers and is the largest field in Algeria, serving as a primary source of energy supply within the country and Europe. Baker Hughes’ equipment will boost and stabilize the pressure of natural gas and increase the site’s production, enhancing Algeria’s domestic energy system, economy, and Europe’s energy security. The manufacture of the compressors, as well as the packaging and testing of the compressor trains, will be conducted at Baker Hughes’s Italian facilities.

Power plant in the Hassi R'Mel gas field; Image Credits: De Jong Energy Services

The Hassi R’Mel project is a portion of a larger strategic cooperation between Italy and Algeria, which includes agreements to facilitate bilateral collaboration and financial backing for Algeria’s gas production under the Mattei Plan. This plan promotes cooperation between Africa and Italy according to five policy pillars: education and training, agriculture, health, water, and energy.

Last month, Worley submitted an order to Baker Hughes, on behalf of Aramco, for gas technology equipment for the third phase of Saudi Arabia’s Master Gas System project that includes a new 4,000-km pipeline. Baker Hughes will deliver 17 pipeline centrifugal compressors driven by aeroderivative gas turbines as part of this award, which was booked in Q1 2024.

“For over 30 years, Baker Hughes has been a trusted partner in natural gas operations, and our long-standing partnership with Aramco is helping to reduce emissions by transitioning to gas,” said Simonelli. “Baker Hughes solutions are advancing the efficient use of natural gas, and we are proud to be delivering a reliable system to transport and distribute gas across Saudi Arabia.”

Saudi Arabia’s new 4,000 km pipeline will assist in the country’s energy transition and is expected to increase domestic gas distribution and contribute to the reduction of oil consumption and carbon emissions. Previously, Baker Hughes supplied 18 gas turbine-driven centrifugal compressors for Phase 1 and 2 of the Master Gas System projects.

In addition to supplying gas equipment for Aramco’s project, Baker Hughes is investing in the expansion of its manufacturing site in Modon, Saudi Arabia. The expansion includes doubling the capacity of its workforce and enabling the site to support the delivery of projects in the Kingdom with localized testing and packaging solutions.