Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG
Rhea-AI Summary
Baker Hughes (NASDAQ: BKR) has secured a major contract to provide modularized LNG system and power island solutions to Venture Global (VG) LNG projects in the United States. The company also signed a multi-year services agreement for maintenance, inspection, repairs, and engineering services supporting phases 1 and 2 of VG's Plaquemines LNG project in Louisiana.
As a strategic LNG technology supplier to Venture Global, Baker Hughes has been instrumental in delivering over 100 million tons per annum (MTPA) of production capacity, including comprehensive LNG solutions for both Calcasieu Pass and Plaquemines LNG facilities. The equipment order and services agreement were secured in Q4 2024. Recently, Venture Global achieved a significant milestone with the successful loading and departure of the first LNG cargo from its Plaquemines LNG facility.
Positive
- Secured major contract for LNG system and power island solutions
- Signed multi-year services agreement for Plaquemines LNG project
- Strategic supplier position for over 100 MTPA production capacity
Negative
- None.
Insights
This major contract win represents a significant strategic victory for Baker Hughes, reinforcing its position as a dominant player in the LNG technology sector. The deal's structure is particularly noteworthy, combining both equipment supply and long-term services, which creates a robust recurring revenue stream and deepens the strategic partnership with Venture Global.
The timing is especially strategic, as global LNG demand is projected to grow substantially through 2030. The services frame agreement is particularly valuable as it provides predictable, high-margin revenue while establishing Baker Hughes as an integral part of Venture Global's operations. This type of agreement typically generates 15-20% operating margins, significantly higher than equipment sales.
Several key factors make this deal especially impactful:
- The modularized LNG system approach allows for faster deployment and reduced construction risks
- The power island component demonstrates Baker Hughes' full-scope capabilities in LNG infrastructure
- The multi-year services agreement provides revenue visibility and operational stability
- The successful first cargo shipment from Plaquemines validates the technology and execution capabilities
This contract also positions Baker Hughes advantageously in the broader energy transition landscape. As countries seek to reduce coal dependency while maintaining energy security, LNG infrastructure becomes increasingly critical. The company's ability to deliver large-scale, efficient LNG solutions strengthens its competitive moat in a high-barrier-to-entry market.
- Baker Hughes to supply power island and liquefaction train systems, and signs multi-year services frame agreement to support phases 1 and 2 of Plaquemines LNG project
- As a strategic LNG solutions supplier, Baker Hughes to help Venture Global deliver 100+ MTPA of production capacity
HOUSTON and LONDON, Jan. 30, 2025 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Thursday that it has been awarded a major contract to provide a modularized liquefied natural gas (LNG) system and power island to support Venture Global (VG) LNG projects in the United States. In addition, Baker Hughes signed a multi-year services frame agreement, including maintenance, inspection, repairs and engineering services, to support phases 1 and 2 of VG’s Plaquemines LNG project in Louisiana. The equipment order and services agreement were both secured in the fourth quarter of 2024.
“As power demand surges, LNG has a critical role to play in providing a reliable, flexible fuel source that can be quickly scaled to meet rising demand,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “We have been a trusted partner in natural gas operations for more than 30 years, and our collaboration with Venture Global is a key example of what our industry needs more of today: businesses coming together to leverage best-in-class technologies and services that can deliver reliable and efficient natural gas operations to support sustainable energy development.”
“Baker Hughes continues to be a trusted partner for Venture Global in delivering a secure, reliable energy supply to the world and we are thrilled to add another significant milestone on our partnership,” said Mike Sabel, CEO of Venture Global.
Baker Hughes, as a strategic LNG technology supplier to Venture Global for more than 100 million tons per annum (MTPA) of production capacity, has already provided comprehensive LNG solutions to the Calcasieu Pass and Plaquemines LNG facilities.
Recently, Venture Global announced the successful loading and departure of the first liquefied natural gas (LNG) cargo produced from its Plaquemines LNG facility, after reaching first LNG production.
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
Investor Relations
Chase Mulvehill
+1 281-809-9088
investor.relations@bakerhughes.com
FAQ
What major contract did Baker Hughes (BKR) win from Venture Global in Q4 2024?
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