Baker Hughes has secured a contract from Bechtel for two LNG liquefaction plants in Louisiana, enhancing capacity and technology offerings.
Quiver AI Summary
Baker Hughes has secured a contract from Bechtel Energy to supply gas technology equipment for two liquefaction plants as part of Phase 1 of Woodside Energy Group's LNG development in Louisiana, which will have a total capacity of 11 million tonnes per annum (MTPA). This order includes eight main refrigeration compressors driven by LM6000PF+ gas turbines and eight expander-compressors, highlighting Baker Hughes' expertise in LNG technology. The collaboration aims to support Woodside in achieving readiness for a final investment decision in early 2025. Bechtel and Baker Hughes underline the project's importance in addressing the growing global demand for LNG. Baker Hughes has a longstanding history of partnership with both Bechtel and Woodside and has also been selected to provide additional equipment for the associated pipeline.
Potential Positives
- Contract awarded by Bechtel for two LNG liquefaction plants signifies a substantial growth opportunity for Baker Hughes within the LNG sector.
- This order supports Phase 1 of a major LNG export project in North America, with a total overall permitted capacity of 27.6 million tonnes per annum, enhancing Baker Hughes' market position.
- The collaboration with prominent companies Bechtel and Woodside underscores Baker Hughes' established industry relationships and expertise in delivering high-demand energy solutions.
- The project reflects Baker Hughes' commitment to sustainable energy development and positions the company as a key player in meeting the increasing global LNG demand.
Potential Negatives
- Dependency on a single major project: Baker Hughes' significant involvement in the LNG liquefaction plants is heavily reliant on the success and completion of the Bechtel and Woodside project, making it vulnerable to project delays or cancellations.
- Risk of competition: The announcement comes at a time when the LNG market is becoming increasingly competitive, raising questions about Baker Hughes' ability to maintain its market position against other energy technology providers.
- Energy industry volatility: The press release highlights Baker Hughes' position in a volatile energy market, which could impact its financial performance if demand for LNG fluctuates or if there are shifts toward alternative energy sources.
FAQ
What is the contract awarded to Bechtel about?
The contract involves supplying gas technology equipment for two liquefaction plants in Louisiana, totaling approximately 11 MTPA capacity.
Who is involved in the Louisiana LNG development?
The development is a collaboration between Bechtel Energy Inc. and Woodside Energy Group Ltd., with equipment supplied by Baker Hughes.
What technology will be used in the LNG plants?
The plants will feature eight main refrigeration compressors powered by LM6000PF+ gas turbines and eight expander-compressors from Baker Hughes.
When is the final investment decision for the LNG project expected?
Woodside targets final investment decision readiness in the first quarter of 2025 for Phase 1 of the project.
How does Baker Hughes support the LNG industry?
Baker Hughes provides proven technology and expertise to ensure the LNG industry can meet rapidly growing global energy demand.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
Contract awarded by Bechtel for 2 LNG liquefaction plants, featuring main refrigeration compressors driven by LM6000PF+ gas turbines, and expander-compressors
Technology scope supports Phase 1 of major LNG export project in North America,
with a total overall permitted capacity of 27.6 million tonnes per annum
HOUSTON and LONDON, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Monday an order from Bechtel Energy Inc. (Bechtel) to supply gas technology equipment for two liquefaction plants with a total capacity of approximately 11 MTPA for Phase 1 of Woodside Energy Group Ltd’s (ASX: WDS; NYSE: WDS) (Woodside) Louisiana LNG development opportunity. The order marks a significant milestone as Woodside targets final investment decision (FID) readiness from the first quarter of 2025.
The award, which includes eight main refrigeration compressors driven by LM6000PF+ gas turbines and eight expander-compressors, leverages Baker Hughes’ proven, best-in-class LNG technologies to support Bechtel and Woodside. Baker Hughes’ history of working with Bechtel and Woodside will support the delivery of Phase 1 of the project.
“Louisiana LNG will play a vital role in meeting the world’s increasing LNG demand,” said Paul Marsden, president of Bechtel Energy. “Bechtel is proud to collaborate with Baker Hughes to help deliver this critical project.”
“We are committed to providing our proven technology to ensure the LNG industry stands ready to meet rapidly growing energy demand,” said Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes. “Building on our 40-year track record in LNG and established collaboration with both Bechtel and Woodside, we look forward to supporting this important project and contributing to sustainable energy development.”
In addition to this award, Baker Hughes was previously selected to supply Woodside electric-powered Integrated Compressor Line (ICL) packages and other turbomachinery equipment for the associated pipeline serving the LNG export terminal.
About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at
bakerhughes.com.
For more information, please contact:
Media Relations
Chiara Toniato
+39 3463823419
chiara.toniato@bakerhughes.com
Baker Hughes Investor Relations
Chase Mulvehill
+1 346-297-2564
investor.relations@bakerhughes.com
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