Baker Hughes Lands Largest Integrated Compressor Line Order in Company’s History

Rhea-AI Summary

Baker Hughes (NASDAQ: BKR) has secured its largest-ever order for Integrated Compressor Line (ICL) units from Dubai Petroleum Establishment (DPE), on behalf of Dubai Supply Authority (DUSUP). The order, booked in Q3 2024, includes 10 ICL units to be installed at the Margham Gas storage facility in Dubai, significantly increasing its capacity.

This project aims to enhance energy supply reliability and support local decarbonization efforts in the United Arab Emirates. The ICL technology will provide a high-reliability system with reduced emissions, strengthening Dubai's ability to switch between natural gas and solar power. This order follows the successful operation of three ICL units since 2020, demonstrating DPE's trust in Baker Hughes' technology.

The ICL units' zero seal leakages and minimal maintenance downtime have made them increasingly popular in the market, with recent awards for projects in Italy, Germany, Argentina, and the United States.

Positive

• Largest-ever ICL order for Baker Hughes, indicating strong market demand
• Significant increase in Margham Gas storage facility capacity
• Strengthens Baker Hughes' position in low-carbon solutions market
• Expands Baker Hughes' presence in the United Arab Emirates
• Demonstrates customer satisfaction with three existing ICL units in operation since 2020

Negative

• None.

Insights

Energy Technology Expert

This landmark order for Baker Hughes represents a significant milestone in the company's history and underscores its growing prominence in the energy technology sector. The 10 Integrated Compressor Line (ICL) units for the Margham Gas storage facility in Dubai will substantially enhance the region's gas swing storage capacity, aligning with the UAE's decarbonization strategy.

The deal's strategic importance lies in its dual benefits:

• Strengthening Dubai's energy supply stability by facilitating seamless switching between natural gas and solar power
• Supporting local decarbonization efforts through reduced emissions and high-reliability systems

For investors, this order signals Baker Hughes' strong market position in low-carbon solutions and its ability to secure large-scale projects in key global markets. The repeated trust from Dubai Petroleum Establishment (DPE) also indicates customer satisfaction and potential for future collaborations.

The positive order momentum for ICL technology across multiple countries suggests a growing global demand for Baker Hughes' energy-efficient solutions, potentially leading to increased revenue streams and market share in the coming years.

Market Research Analyst

This order marks a significant business win for Baker Hughes, potentially impacting its financial performance and market position. Key points for investors to consider:

• Market Leadership: Securing the largest ICL order in company history reinforces Baker Hughes' position as a leader in energy technology solutions.
• Revenue Growth: While specific financial details are not disclosed, an order of this magnitude is likely to contribute substantially to Baker Hughes' revenue in upcoming quarters.
• Geographic Expansion: The project in Dubai, coupled with recent awards in various countries, indicates successful global market penetration and diversification of revenue sources.
• Technology Adoption: The increasing adoption of ICL technology across different applications suggests strong product-market fit and potential for sustained demand.
• Long-term Potential: As countries worldwide focus on decarbonization and energy transition, Baker Hughes is well-positioned to capitalize on this trend with its low-carbon solutions.

Investors should monitor how this order and similar ones translate into financial performance in upcoming earnings reports. The stock may see positive momentum as the market digests the implications of this significant contract.

• Baker Hughes Integrated Compressor Line (ICL) technology to enhance gas swing storage capacity as part of the United Arab Emirates decarbonization strategy
  
• Scope includes 10 ICL units to be installed at Margham Gas storage facility in the Emirate of Dubai

HOUSTON and LONDON, Oct. 08, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Tuesday its largest order ever of Integrated Compressor Line (ICL) units with Dubai Petroleum Establishment (DPE), for and on behalf of Dubai Supply Authority (DUSUP), to enhance the reliability of energy supply and support local decarbonization efforts. The order was booked in the third quarter of 2024.

The 10 ICL units – five for gas storage and five for dual-use injection boosting or gas export to the existing gas distribution system – will be installed at the Margham Gas storage facility in Dubai, significantly increasing its capacity. Through the adoption of the ICL technology, the project aims to achieve a high-reliability system with reduced emissions. The project will provide stability to Dubai’s energy supply by strengthening the system’s ability to switch between natural gas and solar power.

"Our innovative ICL technology is set to be critical to support the gas infrastructure needed to address Dubai’s increasing expansion of renewables into its energy mix,” said Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes. “This landmark order underscores the proven track record we have built in the market for our low-carbon solutions, and we are grateful to DPE for their continued commitment and trust as they deliver sustainable energy development.”

With already three ICL units successfully in operation since 2020, DPE’s decision to continue working with Baker Hughes is a testament to the performance and reliability of the installed technology. With zero seal leakages and minimal downtime required for maintenance, Baker Hughes’ ICL technology continues to solidify its position as a highly sought-after option in the market. The latest award from DPE continues the positive order momentum for this technology and follows awards for different applications in projects across Italy, Germany, Argentina and the United States.

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

FAQ

How many ICL units did Baker Hughes (BKR) sell to Dubai Petroleum Establishment in 2024?

Baker Hughes sold 10 Integrated Compressor Line (ICL) units to Dubai Petroleum Establishment in 2024, marking the company's largest ICL order to date.

What is the purpose of the ICL units ordered by Dubai Petroleum Establishment from Baker Hughes (BKR)?

The ICL units will be installed at the Margham Gas storage facility in Dubai to enhance energy supply reliability, support local decarbonization efforts, and improve the system's ability to switch between natural gas and solar power.

When was the Baker Hughes (BKR) ICL order for Dubai booked?

The order for 10 ICL units was booked in the third quarter of 2024.

What are the key benefits of Baker Hughes' (BKR) ICL technology?

Baker Hughes' ICL technology offers zero seal leakages, minimal downtime for maintenance, high reliability, and reduced emissions, making it an attractive option for gas infrastructure projects.