ABB wins US$100mn EPC contract in Algeria

gas pipeline-project manager flickrHassi R’Mel is reportedly Algeria’s largest gas field. (Image source: Project Manager/Flickr)ABB has been awarded a US$100mn engineering, procurement and construction (EPC) contract for an LPG pumping station in Algeria as part of a project to increase transportation capacity of the LR1 pipeline

The contract was awarded by Algerian oil and gas company Sonatrach in Q4 2012.

The new pumping station is likely to be a part of an expansion project to build a 400km second LPG pipeline, to the already existing 988km LR1 pipleine, between Haoud El Hamra and Hassi R’Mel to boost carrying load from 12.7mn cubic metres a year to 31mn cubic metres a year, Sonatrach said.

Hassi R’Mel is reportedly Algeria’s largest gas field and gas from here is transported by pipeline to terminals on the Mediterranean coast for export to Europe or for processing into liquefied natural gas (LNG).

ABB would be responsible for design, engineering, procurement, commissioning and start-up.

Construction and installation will be performed by Sarpi, a 50-50 per cent joint venture firm owned by ABB and Sonatrach.

The Switzerland-based firm will also be responsible for the supply of complete LPG pumping station including electrical, piping and mechanical equipment.  

The plant is scheduled for completion by March 2015.

Enrico Di Maria, region and local process automation division manager of ABB, said, “This contract confirms ABB’s capabilities to execute EPC projects for the oil and gas industry and underlines once again our strong relationship with Sonatrach in Algeria.

“This ongoing cooperation indicates that ABB is going in the right direction — coupling new technologies with local expertise to make our customers more competitive.”

Meanwhile, other EPC projects that ABB is currently executing in Algeria include the US$650mn field infrastructure for the El Merk oil and gas fields and  a gas flaring elimination project at Haoud Berkaoui.

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