Algeria begins $2.33-billion gasfield upgrade: report

Algeria

ALGIERS, December 3, 2024 – Algeria’s Sonatrach has commenced a USD 2.33-billion project to upgrade facilities at the giant Hassi R’Mel gasfield, Upstream Online reported on Tuesday.

Three compression stations will be built at the field, coming on line between October 2026 and April 2027. The project is designed to conduct an overall upgrade to the field’s gas gathering and processing network.

Works are intended to maintain and possibly increase production at Hassi R’Mel, the North African country’s largest gasfield.

The initiative, undertaken by a Baker Hughes-Tecnimont consortium, aims to maintain production at 188 mcm (6.64 bcf) per day.

It also targets the recovery of an additional 121 bcm (4.27 tcf) of gas, 7 million tonnes of condensate and 3 million tonnes of LPG, the report quoted Sonatrach’s regional director for Hassi R’Mel, Youcef Loucif, as saying.

The consortium won the EPC project in May, with Tecnimont expected to receive USD 1.7 billion and Baker Hughes around USD 600 million.