LNG

Baker Hughes, the US liquefied natural gas equipment-maker and energy services and technology company, was awarded a contract from Algerian state-owned oil and gas company Sonatrach for a gas-boosting project to supply Italy and the European Union.

The project is in the Hassi R’Mel gas field in Laghouat province of central Algeria, which produces and supplies over half of the North African nation’s natural gas.

The giant Hassi R’Mel field had been in long-term decline but this new venture is aimed at increasing gas volumes.

The project will also increase and stabilize feed-gas supplies to the Mediterranean Coast from the Hassi R'Mel hub to the port of Arzew where one of the nation’s two LNG exports plants is located. in Algeria.

System support

Baker Hughes is part of a consortium with Italian engineering company Maire Tecnimont that will supply Sonatrach with 20 compression trains to enhance the resilience of Algeria’s energy system.

“The agreement strengthens Italy-Algeria bilateral relations as Baker Hughes and Tecnimont will leverage their Italian industrial expertise to deliver on the project,” said a statement.

The contract is part of a broader order awarded to the consortium.

The signing ceremony for the contract took place in Algiers in the presence of the three company Chief Executives Rachid Hachichi of Sonatrach, Lorenzo Simonelli of Baker Hughes and Alessandro Bernini of the Maire Tecnimont group as well as Mohamed Arkab, Algeria’s Minister of Energy and Mines.

The part of Baker Hughes award comprises the supply of the 20 compression trains based on the US company’s Frame 5 gas turbine and BCL compressor technology, which will be installed across three gas boosting stations within the Hassi R’ Mel gas field.

The field is located 550 kilometres south of Algiers and is the largest gas field in Algeria and will a key source of energy supply for Algeria and the EU.

Key project

Baker Hughes CEO Simonelli said the agreement is part of an historic collaboration with Sonatrach for key energy projects.

“We have long believed that it is critical to increase gas within the overall global energy mix,” added Simonelli.

“This project helps to solve for energy producers the multi-faceted challenge of driving sustainable energy development as energy demand increases,” the CEO explained.

“ We are proud to support such a critical energy project in partnership with Tecnimont,” Simonelli stated.

Algeria became the second-largest gas supplier to Europe in 2023, further strengthening the country’s role in enhancing the energy security of the continent, particularly in Italy where Algeria represents the biggest single source of import.

The Hassi R’ Mel project is part of a broader strategic collaboration between Algeria and Italy, which includes recently signed agreements to foster bilateral cooperation and for Italy to provide financial support for Algeria’s gas production.

Chart Industries, the US equipment-maker for liquefied natural gas and other clean energy and industrial gases markets, reported a record backlog of more than $4.3 billion as LNG orders continued to flow from North America to China.

Baker Hughes, the US liquefied natural gas equipment-maker and energy services company, said the United States was in danger of surrendering market share in the production and export of LNG to replace coal in Asia and elsewhere to make a cleaner environment.

Chart Industries Inc., the US equipment-maker for the liquefied natural gas and other clean energy and industrial gases markets, said global end-market demand continued to be strong in 2024.

Abu Dhabi National Oil Company (Adnoc) has awarded a contract valued at more than 1.47 billion United Arab Emirate dirhams ($400M) to US LNG equipment and technology-maker Baker Hughes for the supply of two all-electric compression systems for the UAE’s planned second LNG export plant to be located at Al Ruwais Industrial City.

The LNG trains will comprise energy efficient Baker Hughes technology, including compressors driven by 75 megawatt electric motors.

 “The Ruwais LNG plant will be the first LNG project in the Middle East and North Africa region to run on clean power, making it one of the lowest carbon intensity LNG facilities in the world,” said a statement.

Innovation

Fatema Al-Nuaimi, Executive Vice President of Adnoc’s Downstream Business, said that as the first clean electricity-powered LNG facility in the Middle East, the Ruwais LNG project reinforced Adnoc’s commitment to innovation.

“The project aligns with Adnoc’s objectives to grow our energy portfolio with lower-carbon solutions, reinforcing our position as a reliable global supplier of natural gas and contributing to enhancing global energy security,” added Al-Nuaimi.

The Ruwais LNG project consists of two 4.8 million metric tonnes annum liquefaction Trains with a total nameplate capacity of 9.6 MTPA.

When completed, it will more than double Adnoc’s LNG production target capacity to meet increased global demand for natural gas.

The existing liquefaction plant on Das Island in the Arabian Gulf currently has export capacity of 6 MTPA.

Baker Hughes and Adnoc announced the award at the ADIPEC oil and gas and energy conference and exhibition in the UAE.

The US company, which will book the Adnoc order in fourth-quarter earnings, said the two LNG Trains would be driven by the Baker Hughes BRUSH electric motor technology and feature the company’s world-class compressor system.

Portfolio

“This award represents an important milestone for Baker Hughes in the LNG market and demonstrates the strength of our portfolio, which we strategically expanded through the BRUSH Power Generation acquisition in 2022,”  explained Ganesh Ramaswamy, Executive Vice President of Industrial & Energy Technology at Baker Hughes. 

“Over the next decade, electrification will play a critical role in the energy transition, enabling further reduction of the carbon emissions footprint of natural gas,” added Ramaswamy.

“We are incredibly honored that Adnoc Gas, for and on behalf of Adnoc, has chosen Baker Hughes as a trusted partner to support their vision to increase LNG production while further decarbonizing their operations,” Ramaswamy stated.

Baker Hughes noted that the award continued the positive demand momentum in 2023 for the company’s gas technology equipment portfolio after securing several major LNG orders throughout the year. 

Air Products, the US LNG equipment-maker and industrial gases company with several mega-projects in the Middle East and Asia, has signed a deal with the Uzbekistan Government and the national gas company to acquire a gas-to-syngas facility for $1 billion in the former Soviet republic.

Air Products, the LNG equipment-maker and industrial gases company with several mega-projects in the Middle East and Asia, boosted its backlog with four new liquefied natural gas orders and remains the world leader in the sector.

Air Products, the leading liquefied natural equipment-maker and industrial gases company, has signed an agreement to supply LNG technology and equipment for the Port Arthur project in Texas being developed by Sempra Infrastructure.

Honeywell, the US materials and technology group, has agreed to acquire Compressor Controls Corp., a provider of turbomachinery control hardware and services for the LNG, gas processing and refining sectors, for $670 million.

Honeywell, based in Charlotte, North Carolina, said it was buying CCC from Indicor LLC, owned by private equity firm Clayton, Dubilier and Rice and Roper Technologies.

“Compressor Controls Corp. is a leading provider of turbomachinery control and optimization solutions, including control hardware, software and services, and primarily serves the LNG, gas processing, refining and petrochemical segments,” said Nasdaq-listed Honeywell.

Honeywell said the acquired company would be integrated into its Process Solutions business and would strengthen Honeywell's presence in LNG, gas processing, industrial control, automation and process solutions.

The acquisition also bolsters Honeywell's portfolio with new carbon-capture control systems where the same turbomachinery is used to achieve effective removal of carbon-dioxide from process plant emissions.

Process portfolio

“Compressor Control Corp. is an ideal complement to our process solutions portfolio, as it brings an installed base of greater than 14,000 control applications to our portfolio and will enable us to accelerate growth,” said Lucian Boldea, President and Chief Executive of Honeywell Performance Materials and Technologies.

“By enhancing our digitalization portfolio, we are helping customers accelerate their energy transitions through new controls and automation that, for example, can help with carbon capture and sequestration,” Boldea added.

Honeywell said that the addition of Compressor Control Corp.’s proprietary performance analytics, optimization algorithms and predictive health analysis to Honeywell's existing Forge Performance-plus offering would offer end-users the opportunity to maximize production uptime and minimize maintenance spending.

“The combination of the company's existing offerings will provide the most complete end-to-end portfolio of products for operational control, safety, and asset performance management of compressors, turbines, generators and other turbomachinery in the LNG, gas processing, refining and petrochemical segments,” Honeywell explained.

“These assets are the most critical production assets in these industries and have significant impact on the downtime, energy consumption and maintenance expense of end users,” it added.

LNG customers

Compressor Control Corp. is headquartered in Des Moines, Iowa, and has offices located in major oil and gas production regions and employs around 280 people.

“The transaction is expected to close in the second half of 2023, subject to customary closing conditions, including receipt of certain regulatory approvals,” Honeywell added.

Honeywell’s existing LNG industry clients include Louisiana export plant developer Venture Global.

Venture Global’s Calcasieu Pass LNG export facility in Cameron Parish also uses a series of other LNG capable technologies from Honeywell to help remove various contaminants from natural gas prior to liquefaction.

The completed Calcasieu Pass plant included Honeywell’s Mercury Removal Unit (MRU) and Acid Gas Removal Unit (AGRU) technology.

Honeywell noted that taken together, these modular units remove water, mercury, carbon dioxide and sulfur from 1.6 billion standard cubic feet per day of natural gas so it can be liquefied and safely transported to customers on LNG carriers.

US energy and liquefaction technology firm Black & Veatch has selected Mario Azar as the new Chairman and Chief Executive for the company after the decision to retire after 44 years at the helm of Steve Edwards.

The successor to Edwards as CEO and Chairman is currently serving as president of the Energy & Process Industries division at the Overland Park, Kansas-based company.

One of Black and Veatch’s most recent LNG contract awards was for the Cedar FLNG project proposed by Pembina Pipeline Corp and the Haisla First Nation in British Columbia in Western Canada.

Black and Veatch was chosen with South Korean shipbuilder Samsung Heavy Industries for the front-end engineering and design of the project's proposed floating liquefaction, storage and offloading units.

the Cedar project expects to make a final investment decision in 2023 following completion of the environmental assessment process.

The FLNG facilities will be located in the Douglas Channel and have a liquefaction capacity of up to 4 million tonnes per annum of LNG.

On its leadership change, Black and Veatch said that Azar’s appointment was only the eighth senior leader in the founder, managing partner or chair role in the US Midwest company’s 107-year history.

Critical markets

“As global megatrends reshape the critical infrastructure markets we serve, the Black and Veatch Board of Directors is thrilled to select Mario based on his vast global experience, proven leadership capabilities, innovative and collaborative approach and strong focus on client relationships,” said outgoing CEO and Chairman Edwards.

“Since joining the company in 2018, Mario has been the architect of an effort that is repowering the power industry as well as in the strategic repositioning of our company to address the megatrends our clients and the world faces,” stated Edwards.

Black and Veatch said that Azar’s leadership experience spanned more than 32 years in the energy and industrial fields, much of it in engineering and construction solutions.

Prior to joining Black & Veatch in 2018 as the president of the global power business, Azar served in multiple executive roles and led large global businesses at Germany’s Siemens and previously Westinghouse of the USA.

“It is a true honor to be selected to lead Black and Veatch, a company with such deep history and a stellar reputation built by a world-class team of global professionals,” said Azar.

“The portfolio of solutions Black and Veatch offers, coupled with our transformed business model aligning positions us to continue fulfilling our mission,” he declared.

The company said it would name a successor to fill Azar’s current role in the near future.

Before embarking on his engineering career, Azar earned a Bachelor of Science in electrical engineering from the University of North Carolina at Charlotte.