Baker Hughes Secures Significant Gas Technology Order for Third Expansion Phase of Aramco's Jafurah Gas Field

Rhea-AI Summary

Baker Hughes (NASDAQ: BKR) has secured a significant order from Tecnicas Reunidas for the third expansion phase of Aramco's Jafurah gas field in Saudi Arabia. The contract, booked in Q4 2024, includes six gas compression trains and six propane compressors, along with balance of plants and auxiliaries.

The company will provide state-of-the-art electric motor driven compression solutions, leveraging its recently expanded Damman Center in Dammam. This order strengthens Baker Hughes' partnership with Aramco, following previous collaborations on the Haradh and Hawiyah gas plants, first phase of Jafurah, and the third phase of Saudi Arabia's Master Gas System project.

Positive

• Secured major contract for Aramco's Jafurah gas field expansion
• Order strengthens existing partnership with Aramco
• Contract booked in Q4 2024, contributing to backlog
• Leverages company's expanded facilities in Saudi Arabia

Negative

• None.

Insights

Energy Technology Analyst

This contract win represents a strategic milestone for Baker Hughes in the Middle East's energy infrastructure development. The Jafurah field, Saudi Arabia's largest unconventional gas resource, is important to the kingdom's energy transition strategy, with estimated reserves of 200 trillion cubic feet of gas. This third expansion phase contract signals Baker Hughes' critical role in this strategic asset's development.

The order's significance extends beyond immediate revenue implications. By securing this contract for the third phase after previous successful deployments, Baker Hughes demonstrates its technological leadership in electric motor-driven compression solutions. The company's expanded Damman Center in Saudi Arabia provides a competitive advantage through localized manufacturing and service capabilities, aligning with Saudi Arabia's local content requirements.

From a market positioning perspective, this contract reinforces Baker Hughes' dominance in the Middle East's natural gas infrastructure sector. The company's track record with Aramco - including previous phases of Jafurah, Haradh and Hawiyah gas plants and the Master Gas System project - creates significant barriers to entry for competitors.

The selection of electric motor-driven compression technology aligns with the industry's focus on reducing carbon footprint, as these systems typically offer higher efficiency and lower emissions compared to traditional gas-turbine driven compressors. This technological choice positions Baker Hughes favorably for future projects as energy companies increasingly prioritize lower-carbon solutions.

• Contract awarded by Tecnicas Reunidas for six gas compression trains and six propane compressors, including balance of plants and auxiliaries
• State-of-the-art technologies to support third expansion phase of the largest unconventional gas field in Saudi Arabia

HOUSTON and LONDON, Jan. 30, 2025 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Thursday it has been awarded an order by Tecnicas Reunidas for six gas compression trains and six propane compressors, for the third expansion phase of Aramco’s Jafurah gas field, located in the Kingdom of Saudi Arabia. The order was booked in the fourth quarter of 2024.

Building on its broad experience in providing technology solutions for the entire natural gas value chain, Baker Hughes will supply state-of-the-art electric motor driven compression solutions, leveraging its recently expanded Damman Center in Dammam, Saudi Arabia. This order adds to Baker Hughes’ long-standing partnership with Aramco, which includes the supply of compression solutions for the Haradh and Hawiyah gas plants, first phase of the Jafurah gas plant and gas compression facilities, and more recently, equipment for the third phase of Saudi Arabia’s Master Gas System project.

“Gas continues to serve as a vital source of reliable, abundant and lower-carbon energy,” said Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes. “Our advanced gas compression technology will enable efficient and reliable production from the Jafurah field, further supporting Aramco’s vision and contributing to Saudi Arabia's energy development.”

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

What is the scope of Baker Hughes' (BKR) new contract for Aramco's Jafurah gas field?

Baker Hughes will supply six gas compression trains and six propane compressors, including balance of plants and auxiliaries, for the third expansion phase of the Jafurah gas field.

When was the Jafurah gas field contract booked by Baker Hughes (BKR)?

The contract was booked in the fourth quarter of 2024.

What technology will Baker Hughes (BKR) provide for the Jafurah project?

Baker Hughes will provide state-of-the-art electric motor driven compression solutions, leveraging its Damman Center in Saudi Arabia.

What other projects has Baker Hughes (BKR) worked on with Aramco?

Baker Hughes has previously supplied compression solutions for Haradh and Hawiyah gas plants, first phase of Jafurah, and equipment for the third phase of Saudi Arabia's Master Gas System project.