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ABB Wins $100m Oil and Gas Order in Algeria

Source: www.gulfoilandgas.com 6/19/2013, Location: Africa

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ABB, the leading power and automation technology group, has been awarded the engineering, procurement and construction (EPC) contract for a new liquefied petroleum gas (LPG) pumping station in the Hassi Messaoud District to increase the capacity of LR1 pipeline in Algeria. The contract was awarded by Sonatrach, Algeria’s oil and gas company, and is valued at $100 million. The order was booked in the fourth quarter of 2012.

The new pumping station is part of an expansion project to add a second LPG pipeline between Haoud El Hamra and Hassi R’Mel in order to boost pipeline transportation capacity from 4.5 million tons a year to 11 million tons a year. Hassi R’Mel is Algeria’s largest gas field and the hub of the country’s natural gas transport network. From Hassi R’Mel the gas is transported by pipeline to terminals on the Mediterranean coast for export to Europe or for processing into liquefied natural gas.

ABB is responsible for design, engineering, procurement, commissioning and start-up. Construction and installation will be performed by, Sarpi, a 50% Joint Venture company owned by ABB and Sonatrach.

ABB will also supply a complete LPG pumping station including all the electrical, piping and mechanical equipment. The solution encompasses a broad range of ABB power and automation products and systems including switchgear, transformers, motors, variable speed drive systems, instrumentation, distributed control and safety systems, as well as a supervisory control and data acquisition (SCADA) system for the new 400 km pipeline. The plant is scheduled for completion by March 2015.

“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," said Enrico Di Maria ABB’s Region and Local Process Automation division Manager. "This ongoing cooperation indicates that ABB is going in the right direction – coupling new technologies with local expertise to make our customers more competitive.”

ABB has a long and successful track record for oil and gas plants in Algeria. Other EPC projects that ABB is currently executing in Algeria include the field infrastructure for the El Merk oil and gas fields, a contract worth $650 million and one of the largest EPC contracts in ABB’s history, a gas flaring elimination project at Haoud Berkaoui, and the delivery of utilities, storage and export facilities for the central processing plant at Menzel Ledjmet East in the Berkine Basin.

For more information about related Opportunities and Key Players visit Algeria Oil and Gas Projects

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