ABB wins $100m oil and gas EPC contract in Algeria

Algerian oil and gas company Sonatrach has awarded ABB a $100 million contract for the engineering, procurement and construction (EPC) of a new LPG pumping station to increase the capacity of LR1 pipeline in Algeria.

ABB will be responsible for the design, engineering, procurement, commissioning and start-up. Sarpi, a 50% joint venture company owned by ABB and Sonatrach, will carry out the construction and installation.

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 to 11 million tonnes a year. Hassi R’Mel is Algeria’s largest gas field and the hub of the country’s natural gas transport network. Gas is transported by pipeline from Hassi R’Mel to the coast for export to Europe and for processing into LNG.

ABB will also supply a complete LPG pumping station, including all electrical, piping and mechanical equipment. The project will use a range of ABB’s power and automation products and systems, including switchgear, transformers, motors, variable speed drive systems, instrumentation, distributed control and safety systems, as well as a SCADA system for the new 400 km pipeline.

ABB has executed a number of other oil and gas projects in Algeria, including the $650 million field infrastructure for the El Merk oil and gas fields - 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.

The order was booked in Q4 2012. The plant is expected to be completed by March 2015.