Baker Hughes to Support Strategic Gas Project in Algeria to Enhance Italy, Europe’s Energy Security

Baker Hughes to Support Strategic Gas Project in Algeria to Enhance Italy, Europe’s Energy Security

ALGIERS, Algeria, May 23, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Thursday it was awarded a major contract from SONATRACH for a gas-boosting project for the 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. The signing ceremony took place in Algiers in the presence of the three company CEOs: Rachid Hachichi of SONATRACH, Lorenzo Simonelli of Baker Hughes, and Alessandro Bernini of MAIRE, as well as H.E. Mohamed Arkab, Minister of Energy & Mines.
  • Contract Awarded: Baker Hughes, an energy technology company, has been awarded a major contract from SONATRACH for a gas-boosting project for the Hassi R’Mel gas field in Algeria

  • Consortium Formation: The contract is part of a broader order awarded to a consortium between Baker Hughes and Tecnimont, part of the technology and engineering group MAIRE.

  • Significance of the Project: The project aims to boost gas production at the Hassi R’Mel gas field, one of the world’s largest, which is critical for enhancing Algeria’s energy ecosystem and supporting Europe’s energy security by ensuring stable gas supplies.

  • Technology and Expertise: Baker Hughes’ 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 the Hassi R’Mel gas field.

  • Location and Importance: 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.

  • Role of Baker Hughes: Baker Hughes’ proven technology solutions are expected to play a central role in the project by boosting and stabilizing the pressure of natural gas and increasing production at the site, thereby enhancing Algeria’s domestic energy system, economy, and Europe’s energy security.

  • CEO Statements: Lorenzo Simonelli, chairman and CEO of Baker Hughes, emphasized the historical collaboration with SONATRACH and the critical role of increasing gas within the global energy mix for achieving a lower-carbon economy.

  • Algeria’s Ambitious Plan: The gas-boosting stations are part of Algeria’s 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.

  • Importance for Europe: Algeria became the second-largest gas supplier to Europe in 2023, further strengthening its role in enhancing the energy security of the continent, particularly in Italy, where Algeria represents the biggest single source of import.

  • Strategic Collaboration: The Hassi R’Mel Project is part of a broader strategic collaboration between Algeria and Italy, including recently signed agreements to foster bilateral cooperation and provide financial support for Algeria’s gas production as part of the Mattei Plan.

  • Manufacturing and Testing: 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.

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