Argent LNG Selects Baker Hughes as Technology Provider, Strengthening Project

Rhea-AI Summary

Baker Hughes (NASDAQ: BKR) has been selected by Argent LNG as the technology provider for its proposed LNG export facility in Port Fourchon, Louisiana. The facility aims to produce approximately 24 million tonnes per annum (MTPA) of LNG.

Baker Hughes will provide liquefaction solutions, power generation equipment, and gas compression systems, featuring their NMBL™ modularized LNG solution powered by LM9000 gas turbines. The project will integrate iCenter™ digital solutions powered by Cordant™ to optimize operational efficiency.

The project's Phase 1 construction is scheduled to begin in 2026, with commercial operations expected by 2030. Phase 2 is progressing through critical milestones, including FERC approvals and gas supply agreements. Baker Hughes anticipates receiving orders as the project advances toward Final Investment Decision.

Positive

• Secured major contract for 24 MTPA LNG facility technology provision
• Multi-year services agreement included in the contract scope
• Project implementation includes advanced digital solutions for operational optimization
• Clear timeline established with construction start in 2026 and operations by 2030

Negative

• Final Investment Decision pending, orders not yet confirmed
• Project execution timeline extends several years into the future

Insights

LNG Industry Expert

This landmark agreement positions Baker Hughes to capture a significant share of the expanding U.S. LNG infrastructure market. The selection of Baker Hughes' advanced NMBL™ technology suite for Argent LNG's 24 MTPA facility demonstrates the company's competitive edge in modular LNG solutions.

The deal's structure is particularly noteworthy for three reasons: First, it includes a multi-year services component that will generate recurring revenue streams well beyond the initial equipment sale. Second, the integration of iCenter™ digital solutions powered by Cordant™ creates high-margin software revenue opportunities. Third, the modular approach using pre-fabricated and tested units significantly reduces project execution risks and timeline uncertainties.

The timing of this agreement is strategic, as it coincides with growing global demand for U.S. LNG exports. With Phase 1 construction targeted for 2026 and operations by 2030, Baker Hughes is well-positioned to benefit from the next wave of LNG infrastructure development. The project's phased approach also provides flexibility in scaling capacity based on market conditions.

For investors, this represents a strong validation of Baker Hughes' technology leadership in the LNG sector. The company's ability to secure major contracts for next-generation LNG facilities underscores its competitive moat in high-efficiency, modular liquefaction solutions. The multi-year services agreement also adds valuable visibility to future revenue streams, enhancing the company's recurring revenue profile.

Energy Infrastructure Analyst

The selection of Baker Hughes' advanced liquefaction technology for this 24 MTPA facility represents a strategic win in the competitive LNG infrastructure market. The LM9000 gas turbine technology offers superior efficiency and reliability compared to conventional solutions, providing a important competitive advantage in large-scale LNG projects.

The modular design approach using NMBL™ technology is particularly significant as it addresses key industry challenges: reducing construction complexity, minimizing on-site work and enabling faster project execution. This modular strategy typically results in 15-20% lower project costs compared to traditional stick-built approaches.

The integration of digital solutions through iCenter™ and Cordant™ platforms positions Baker Hughes at the forefront of smart LNG facility operations. These digital capabilities typically improve facility uptime by 3-5% and reduce maintenance costs by 10-15%, creating compelling value propositions for operators.

The phased development approach, with operations targeted for 2030, aligns well with projected global LNG demand growth. This timing could coincide with an expected supply gap in the global LNG market, potentially enhancing the project's commercial viability and Baker Hughes' order book strength in the coming years.

• Baker Hughes to supply liquefaction solutions utilizing NMBL™ module and LM9000 gas turbine
• Agreement also comprises a multi-year services plan, including iCenter™ digital solutions powered by Cordant™, to support Argent LNG terminal operations
• Proposed project targets approximately 24 million tonnes per annum (MTPA) of production capacity
  

FLORENCE, Italy, Feb. 03, 2025 (GLOBE NEWSWIRE) -- Argent LNG LCC (Argent LNG) has selected Baker Hughes (NASDAQ: BKR), an energy technology company, as the liquefaction solution and related services provider for its proposed liquified natural gas (LNG) export facility in Port Fourchon, Louisiana. Baker Hughes will supply cutting-edge liquefaction solutions, power generation equipment, and gas compression systems for the facility, which is set to deliver approximately 24 million tonnes per annum (MTPA) of LNG. The announcement was made during Baker Hughes’ Annual Meeting in Florence.

The project will incorporate Baker Hughes’ advanced technologies, including its NMBL™ modularized LNG solution powered by the highly efficient LM9000 gas turbine. These modules, pre-fabricated and tested at Baker Hughes’ facilities, will ensure scalable and reliable LNG production to the project and integrate iCenter™ digital solutions powered by Cordant™ to maximize availability, reliability, and operational efficiency. Baker Hughes will also provide power generation units driven by LM9000 gas turbines and provide multi-year services to support Argent LNG terminal operations.

By leveraging its extensive knowledge and experience in LNG development, Baker Hughes will help optimize project execution, and ensure a streamlined, cost-effective design, allowing Argent LNG to move forward with greater efficiency and financial certainty.

“Today’s announcement is a further testament to the technology capabilities that we have built over the past 30-plus years in LNG. This collaboration with Argent LNG underscores our commitment to delivering advanced, best-in-class LNG solutions,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “As global energy demand continues to grow, we are committed to providing innovative technology solutions to the LNG industry, a key supplier of reliable and affordable energy to many countries around the world.”

“We chose Baker Hughes because of their proven cutting-edge technology, established LNG market presence, and commitment to innovation — all of which align perfectly with Argent LNG’s vision to provide transformative energy solutions,” said Jonathan Bass, chairman and CEO of Argent LNG. “This collaboration underscores Argent LNG’s commitment to technical excellence, cost-effective execution, and energy security, while also strengthening the project’s bankability by leveraging Baker Hughes’ proven expertise and industry leadership. Today’s announcement demonstrates how innovation and collaboration can drive progress in the LNG industry, helping to secure affordable, sustainable energy for global markets.”

Phase 1 construction is targeted to begin in 2026, with commercial operations expected by 2030. Phase 2, which aims to expand capacity, is advancing through critical milestones, including resource reporting, securing FERC approvals, formalizing gas supply agreements, and achieving financial close.

Baker Hughes expects orders in relation to this agreement, as the Argent LNG project progresses and reaches Final Investment Decision, further solidifying its key role in Argent LNG’s long-term success.

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.

About Argent LNG
Argent LNG LLC is a privately held energy company dedicated to developing world-class LNG export solutions to meet the rising global demand for clean, reliable energy. Based in Louisiana, Argent LNG is focused on leveraging cutting-edge technologies and strategic partnerships to deliver cost-effective, sustainable, and efficient energy solutions. The company’s proposed export facility at Port Fourchon is designed to strengthen energy security and economic growth while reinforcing the United States’ leadership in the global LNG market.

For more information, please contact:

Media Relations

Chiara Toniato
+39 3463823419
chiara.toniato@bakerhughes.com

Investor Relations

Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com

FAQ

What is the capacity of the Argent LNG project that Baker Hughes (BKR) will support?

The Argent LNG project will have a production capacity of approximately 24 million tonnes per annum (MTPA) of LNG.

When will construction begin for the Baker Hughes (BKR) supported Argent LNG facility?

Phase 1 construction is targeted to begin in 2026, with commercial operations expected by 2030.

What technology solutions will Baker Hughes (BKR) provide to Argent LNG?

Baker Hughes will provide NMBL™ modularized LNG solution, LM9000 gas turbines, power generation equipment, gas compression systems, and iCenter™ digital solutions powered by Cordant™.

Where will the Baker Hughes (BKR) supported Argent LNG facility be located?

The LNG export facility will be located in Port Fourchon, Louisiana.

What is the timeline for Phase 2 of the Baker Hughes (BKR) Argent LNG project?

Phase 2 is currently advancing through critical milestones, including resource reporting, FERC approvals, gas supply agreements, and financial close, but no specific timeline has been announced.