Baker Hughes Secures Liquefaction Equipment Order for Woodside Louisiana LNG
Rhea-AI Summary
Baker Hughes (NASDAQ: BKR) has secured a significant order from Bechtel Energy for gas technology equipment to support Phase 1 of Woodside's Louisiana LNG development. The contract includes equipment for two liquefaction plants with an approximate total capacity of 11 MTPA, part of a larger project with a total permitted capacity of 27.6 MTPA.
The order encompasses eight main refrigeration compressors driven by LM6000PF+ gas turbines and eight expander-compressors. This agreement comes as Woodside targets final investment decision readiness from Q1 2025. Baker Hughes was also previously selected to supply electric-powered Integrated Compressor Line packages and turbomachinery equipment for the associated pipeline serving the LNG export terminal.
Positive
- Secured major equipment order for Woodside's Louisiana LNG development
- Project represents significant portion of total 27.6 MTPA permitted capacity
- Additional contract win following previous selection for ICL packages
Negative
- None.
Insights
Baker Hughes' latest contract win for Woodside's Louisiana LNG project represents a
The timing is strategic - with Woodside targeting FID in Q1 2025, Baker Hughes secures an early-mover advantage in what could become a significant revenue stream. The follow-on order after securing the pipeline equipment contract demonstrates Baker Hughes' ability to capture multiple value streams within major LNG projects. Importantly, this positions BKR to potentially secure additional orders for future project phases.
For investors, this represents strong execution in Baker Hughes' Industrial & Energy Technology segment, which commands higher margins compared to traditional oilfield services. The company's proven track record with both Bechtel and Woodside reduces execution risk. This contract will contribute meaningfully to BKR's backlog and provides multi-year revenue visibility.
This contract award aligns perfectly with the accelerating global LNG demand trajectory. The Louisiana LNG development, with its strategic location and substantial capacity, is positioned to capitalize on both Atlantic and Pacific basin market opportunities. Think of it as building a massive energy bridge connecting U.S. gas supplies to energy-hungry markets worldwide.
The selection of Baker Hughes' advanced LM6000PF+ turbine technology is particularly noteworthy. These units offer superior efficiency and reliability - critical factors for LNG plant economics. The integrated solution, combining main refrigeration compressors with expander-compressors, optimizes the liquefaction process, potentially reducing operating costs and improving plant reliability.
From a competitive landscape perspective, this win reinforces Baker Hughes' position as a top-tier LNG technology provider. The combination of their proven technology portfolio and established relationships with major EPC contractors like Bechtel creates a formidable moat in the high-value LNG equipment market.
- Contract awarded by Bechtel for 2 LNG liquefaction plants, featuring main refrigeration compressors driven by LM6000PF+ gas turbines, and expander-compressors
- Technology scope supports Phase 1 of major LNG export project in North America, with a total overall permitted capacity of 27.6 million tonnes per annum
HOUSTON and LONDON, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Monday an order from Bechtel Energy Inc. (Bechtel) to supply gas technology equipment for two liquefaction plants with a total capacity of approximately 11 MTPA for Phase 1 of Woodside Energy Group Ltd’s (ASX: WDS; NYSE: WDS) (Woodside) Louisiana LNG development opportunity. The order marks a significant milestone as Woodside targets final investment decision (FID) readiness from the first quarter of 2025.
The award, which includes eight main refrigeration compressors driven by LM6000PF+ gas turbines and eight expander-compressors, leverages Baker Hughes’ proven, best-in-class LNG technologies to support Bechtel and Woodside. Baker Hughes’ history of working with Bechtel and Woodside will support the delivery of Phase 1 of the project.
“Louisiana LNG will play a vital role in meeting the world’s increasing LNG demand,” said Paul Marsden, president of Bechtel Energy. “Bechtel is proud to collaborate with Baker Hughes to help deliver this critical project.”
“We are committed to providing our proven technology to ensure the LNG industry stands ready to meet rapidly growing energy demand,” said Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes. “Building on our 40-year track record in LNG and established collaboration with both Bechtel and Woodside, we look forward to supporting this important project and contributing to sustainable energy development.”
In addition to this award, Baker Hughes was previously selected to supply Woodside electric-powered Integrated Compressor Line (ICL) packages and other turbomachinery equipment for the associated pipeline serving the LNG export terminal.
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
Baker Hughes Investor Relations
Chase Mulvehill
+1 346-297-2564
investor.relations@bakerhughes.com
FAQ
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