LNG

Honeywell, the US technology group, has agreed to acquire the liquefied natural gas process technology and equipment business of global leader Air Products for $1.81 billion in an all-cash transaction.

Baker Hughes, the US energy technology company and compressor provide for liquefaction plants, was awarded an order by Bechtel Energy to supply equipment for the Rio Grande export project in Texas being developed by NextDecade Corp. and partners.

Baker Hughes, the US liquefied natural gas equipment-maker and energy services company, has been awarded an order by Bechtel Energy to supply two main refrigerant compressors for the Port Arthur LNG export project in Texas.

The Port Arthur venture is being developed in the first phase by the Sempra Infrastructure unit of California-based Sempra in Jefferson County, Texas, after a positive final investment decision made on March 20.

Baker Hughes said it would supply four Frame 7 turbines paired with eight centrifugal compressors across two LNG Trains under the deal with engineering, procurement and construction contract-holder Bechtel.

The two large-capacity Trains at the Texas project will each produce over 6 million tonnes per annum for a nameplate capacity of around 13 MTPA in the first phase.

Baker Hughes added that it would also supply two electric motor-driven compressors for the plant’s boosting services.

Critical equipment

“We are delighted to be working with Bechtel and Sempra Infrastructure to supply critical equipment for this innovative LNG project,” said Baker Hughes Chairman and Chief Executive Lorenzo Simonelli.

“Baker Hughes has been committed to LNG for over 30 years, and the announcement builds on our track record of delivering high-availability and reliable LNG technology, with low total cost of operations, further enabling increased exports of LNG from the US Gulf Coast to meet global energy needs,” Simonelli added.

Baker Hughes noted that the Frame 7 turbine was well-proven for its energy efficiency, availability, reliability and maintainability.

“Packaging of the turbine-compressor Train, a unique Baker Hughes offering, as well as manufacturing of the compressors and testing of the Trains, will take place at Baker Hughes’ facilities in Italy,” explained the company.

Commercial start

“The expected commercial operation dates for Port Arthur LNG Phase 1 Train 1 and Train 2 are 2027 and 2028 respectively,” added Baker Hughes.

Total capital expenditure for the Port Arthur Phase 1 project is estimated at $13 billion.

Sempra explained that it had secured a joint venture with ConocoPhillips whereby an affiliate of the US major has acquired a 30 percent non-controlling interest in the project and is purchasing 5 MTPA of LNG offtake under a 20-year sale and purchase agreement.

Additionally, ConocoPhillips will be managing the Port Arthur project's overall natural gas supply requirements.

ConocoPhillips will also have certain rights to participate in future expansion projects in both equity and offtake.

Sempra has also reserved an indirect stake in Port Arthur LNG for US asset management firm Kohlberg Kravis Roberts , which is already a stakeholder in Sempra Infrastructure.

Baker Hughes, the US liquefied natural gas equipment-maker and energy services company, said in reporting third-quarter earnings that even amid economic challenges the outlook for oil, gas and LNG was supportive of a multi-year upturn in spending.

The 50th anniversary Gastech Exhibition and Conference on LNG, pipeline natural and emerging energies is beginning on September 5 in the Italian city of Milan with global energy leaders and executives set to discuss the growing global gas crisis.

July 20 (LNGJ) - Baker Hughes, the liquefied natural gas equipment-maker and energy services company, posted a second-quarter operating loss of $25 million compared with a profit of $194M in the prior-year period. However, the company led by Chairman and Chief Executive Lorenzo Simonelli recorded strong orders from its Turbomachinery and Process Solutions (TPS) division as the LNG order cycle continued to unfold.

   “TPS secured a major contract from Bechtel to provide seven mid-scale LNG trains to support the Stage 3 expansion project of Cheniere’s Corpus Christi Liquefaction facility,” said the company. “Also in LNG, TPS continued to support New Fortress Energy’s (NFE) ‘Fast LNG’ facilities project with a contract for two main refrigerant turbo-compressor strings in offshore. NFE will deploy Baker Hughes technology in various offshore projects across the globe,” added Baker Hughes

Baker Hughes, the liquefied natural gas equipment-maker and energy services company, has told investors it was well positioned to capitalize on multi-year growth in LNG and new energy projects.

The company, which has main offices in Houston and London and is led by Chairman and Chief Executive Lorenzo Simonelli said it had an “exciting portfolio” of emerging energy transition technologies and solutions.

In its most recent earnings, Baker Hughes recorded strong orders from its Turbomachinery and Process Solutions (TPS) division and said the LNG order cycle continued to unfold.

The company believes that the industry has entered another constructive LNG cycle, which is being expedited by the current geopolitical situation, particularly for US LNG projects and it forecast that global liquefaction capacity could be expected to almost double by 2040.

“We have compelling growth profile driven by range of energy transition initiatives,” said Baker Hughes in a presentation to investors.

“Multiple areas could drive extended growth cycles over the next 5-10 years and beyond,” stated Baker Hughes.

Contracts

Baker Hughes was most recently awarded the contract for the LNG driver system for the first phase of US company Venture Global’s Plaquemines LNG project, located south of New Orleans on the Mississippi River in Louisiana.

The company said it now had orders booked for 150 million tonnes per annum of LNG capacity.

Baker Hughes has four divisions and in addition to LNG equipment through the Turbomachinery and Process unit it also offers oil field services, oil field equipment and digital energy solutions.

New LNG wave

“Gas fundamentals, particularly in Europe and Asia have tightened significantly. The current backdrop supports a new wave of LNG projects being sanctioned to fill the liquefaction capacity supply-demand gap,” it said,.

“there has also been a significant increase in long-term contracting activity and this has helped projects secure funding and progress to final investment decisions,” it noted.

In oil services, the company stated that sustained underinvestment had started to impact supply in the oil market.

“Capital discipline and the escalating focus on shareholder returns has restrained spending and ESG pressures have driven the strategies of major international oil companies away from fossil fuels,” said Baker Hughes.

It cited in particular the members of the Organization of Petroleum Exporting Countries.

“OPEC countries, struggling to meet quotas, have seen spare capacity shrinking and global oil inventories trending significantly below average,” said Baker Hughes.

The company stated that the demand recovery in oil and LNG is set to exceed pre-Covid-19 levels despite increasing pressure to reduce hydrocarbon consumption.

Baker Hughes said the spending surge was fuelled by strong economic recovery in developed economies and long-term structural growth in emerging economies.

Venture Global, the US developer of three LNG export plants in Louisiana, said that US engineering firm KBR was awarded the engineering, procurement and construction contract for the first phase of the Plaquemines project on the banks of the Mississippi River.

Chart Industries, the US LNG equipment-maker, has delivered part of its order for the liquefaction process system to install at the Calcasieu Pass LNG export project at Cameron Parish in Louisiana being developed by Venture Global.

Venture Global LNG of the US said it completed successful string tests at Baker Hughes in Italy of the first mixed-refrigerant compression system for the Calcasieu Pass export plant in Louisiana.