Project Launched to Maintain Production from Giant Algerian Gas Field

Algeria’s state-owned energy company Sonatrach has launched a US$2.33 billion project to maintain — and potentially increase — gas production from its giant Hassi R’Mel field.

Hassi R’Mel is the country’s largest gas field and one of the largest in the world. It is also critical to Algeria’s economy and to Sonatrach, which is committed to making significant investments to maintain production.

Sonatrach said the just-launched project aims to offset natural depletion and keep production at 188 million cubic metres per day, which will be vital for maintaining supplies to Europe.

The project involves building three compression stations with 20 turbo-compressors, upgrading the field's existing 300-kilometre gas gathering network, installing condensate processing modules and simplifying.

A central compression station is due to begin operations in October 2026, with northern and southern stations set to follow in January 2027 and April 2027, respectively.

Sonatrach's regional director for Hassi R'Mel, Youcef Loucif, stated that the project aims to recover an extra 121 billion cubic metres of gas, 7 million tonnes of condensate, and 3 million tonnes of liquefied petroleum gas (LPG).

Sonatrach chairman Rachid Hachichi launched the project in the presence of the chief executives of Baker Hughes and Tecnimont — Lorenzo Simonelli and Alessandro Bernini, respectively — the lead contractors handling the project.

A consortium of Baker Hughes and Tecnimont, assisted by Nuovo Pignone, were awarded an engineering, procurement and construction contract covering the upgrade work in May 2024.

Tecnimont' share of the contract is US$1.7 billion, with Baker Hughes portion valued at about US$600 million.