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Hassi R'Mel Gas Field Development

Algeria

2024 - Ongoing
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Project Description

Approach Words: Sustainability

Public Policy Instruments: Planning

The Hassi R’Mel Gas Field Development is a large-scale gas boosting and gathering-system upgrade initiative targeting Algeria’s largest gas field, located roughly 550 kilometers south of Algiers.1 2 The project is noteworthy because it focuses on a globally significant gas hub that underpins Algeria’s domestic supply and export linkages to Europe. 3 4
The project’s vision is to “stabilize system pressure and across the transmission system handling natural gas from the Hassi R’Mel field 5 , sustain production capacity at around 188 million standard cubic meters daily,6 thereby supporting continuous, reliable gas supply for Algeria’s domestic network and export corridors; particularly toward Italy and wider European markets in the context of European supply diversification. 7 8 9

The project seeks to address reservoir depletion through strategic compression capacity and modernization of field infrastructure.10 11 12 The development is projected to facilitate the recovery of an additional 121 billion cubic meters of dry gas, 7 million tons of condensates, and 3 million tons of liquefied petroleum gas (LPG) throughout its operational lifespan.13

The project has been designed to compress roughly 188 million standard cubic meters of natural gas each day. 14 15 16 The boosting stations along with the upgraded gathering system are expected to maintain gas pressure across the pipeline network, which should enable efficient gas flow from the field to downstream facilities.17 18

Title: Schematic diagram of the Algerian domestic natural gas pipeline network.

Source: Click Here

Title: Surface facility diagram of the Hassi R'mel gas production and processing hub.

Source: Click Here

Title: Composite stratigraphic chart of the Hassi R'mel field area located on the M'Zab Dorsal, highlighting the main gas-producing Triassic sandstone units (reservoirs)..

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Title: Gas Separation/Boosting Plant.

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To implement the vision, the project follows a state-led strategic energy infrastructure model that centers on:

  •  Three new gas boosting stations (northern, central, and southern) 19 20
  • 20 turbo-compressor trains (commonly described using Frame 5 gas turbine and BCL compressor technology). 21 22
  • Upgrade and redesign of the gas gathering network, reported at over 300 kilometers of flowlines linking wells to processing facilities. 23 24 25

Condensate demercurization (mercury-removal) units and integration and tie-ins to existing processing infrastructures. 26
The overall is widely reported at approximately USD 2.3 billion, with USD 1.7 billion of the contract share corresponding to the public company’s share ‘Tecnimont’. 27 28

Owner/Developer (Public)

Sonatrach (Algeria National Oil Company)

Ministry of Energy, Algeria 51

Consultant/Designer

Tecnimont S.p.A. (MAIRE Group)

Baker Hughes 52

Funder

Contractor/Implementer

Tecnimont S.p.A. (MAIRE Group) – EPC Contractor

Baker Hughes – Equipment & Technology Provider 54

Nuovo Pignone International Srl (Baker Hughes subsidiary)

Owner/Developer (Public)

Sonatrach (Algeria National Oil Company)

Ministry of Energy, Algeria 51

Contractor/Implementer

Tecnimont S.p.A. (MAIRE Group) – EPC Contractor

Baker Hughes – Equipment & Technology Provider 54

Nuovo Pignone International Srl (Baker Hughes subsidiary)

Funder

Consultant/Designer

Tecnimont S.p.A. (MAIRE Group)

Baker Hughes 52

The project is owned and commissioned by Sonatrach, Algeria’s state-owned energy company, serving as the project owner and client. 29 30 Engineering, procurement, and construction are delivered through an EPC consortium led by Tecnimont (MAIRE Group), in partnership with Baker Hughes and Nuovo Pignone International, which jointly secured the EPC contract and provide specialized engineering, equipment, and technology inputs for project delivery. 31 32 33
Implementation of the project unfolds across distinct phases:34 35

  • Phase 1 (2024): Contract award and mobilisation; engineering and procurement begin, including compressor train manufacturing and long-lead equipment (produced at the Baker Hughes plants in Italy). 36 37
  • Phase 2 (2024 – 2026): Progressive construction and installation of the three boosting stations and gathering-system upgrades, including site preparation, equipment installation, and integration with the existing in place infrastructure.38 39 40
  • Phase 3 (2026 – 2027): Staged commissioning, performance testing of the facilities, and start-up sequence reported as Central (October 2026), North (January 2027), and South (April 2027). 41 42 43 44

The project is currently under construction, with roughly 51 percent of completed work, as of July 2025, based on technical presentations made during site inspections. 45 46
The entire project completion is expected after a period of 39 months effective date of the contract. 47 48
Upon completion, the Hassi R’Mel Gas Field Development is expected to extend the productive life and deliverability of Algeria’s most critical gas hub, strengthening its position as a reliable supplier and supporting energy-security objectives for partner markets connected to its export system. 49 50

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