Baker Hughes to Supply Electric-driven Liquefaction Technology for Cedar LNG Project
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The order awarded to Baker Hughes by Black & Veatch for the Cedar LNG project in Canada underscores the ongoing transition within the energy sector towards lower carbon intensities and the increasing demand for electrically-driven solutions. By supplying turbomachinery equipment such as main refrigeration compressors, boil-off gas compressors and centrifugal pumps, Baker Hughes is positioning itself as a key player in the LNG market's shift to more sustainable practices.
From an energy technology perspective, the use of electric-driven equipment, powered by renewable electricity, represents a significant advancement in reducing the carbon footprint of LNG facilities. The integration of such technologies is expected to enhance the operational efficiency and environmental compatibility of Cedar LNG, potentially setting a new standard for future developments in the industry. This could lead to a competitive advantage for Baker Hughes, as demand for green technologies is likely to increase in response to global decarbonization efforts.
Moreover, the project's significance for the Haisla Nation's economic and social development could serve as a model for other indigenous communities seeking to participate in sustainable industrial developments. This aspect of the project may influence investor perception positively, as it aligns with growing trends in environmental, social and governance (ESG) investing.
The Cedar LNG project is indicative of a broader industry trend where companies and investors are increasingly attentive to the environmental impact of energy production. The partnership between the Haisla Nation and Pembina Pipeline Corporation, along with the involvement of a global player like Baker Hughes, reflects a collaborative approach to energy projects that could become more prevalent.
From a market standpoint, Baker Hughes' involvement in Cedar LNG may boost investor confidence in the company's ability to secure significant orders and maintain a strong position in the LNG equipment market. The project's emphasis on low-carbon intensity and the potential to supply customers transitioning away from higher carbon feedstocks could open up new markets and drive demand for Baker Hughes' services.
Furthermore, the announcement of this order booking in the first quarter of 2024 could have positive implications for Baker Hughes' financial performance in the short to medium term. It also highlights the company's positive demand momentum following several major LNG orders over the past year, which is a noteworthy consideration for stakeholders assessing the company's market trajectory and growth potential.
The Cedar LNG project represents a convergence of environmental sustainability and indigenous economic empowerment, which is increasingly relevant in policy discussions. The project's design, which prioritizes low carbon intensity by leveraging renewable electricity, aligns with Canada's environmental policies and its commitments to reduce greenhouse gas emissions.
The involvement of the Haisla Nation is particularly significant as it reflects an evolving framework for indigenous participation in major industrial developments. This could influence future policy-making by demonstrating the viability of such partnerships, potentially shaping how governments and corporations approach resource development projects with respect to indigenous lands and communities.
For stakeholders, the project's compliance with stringent environmental standards and its potential to contribute to Canada's decarbonization goals are important considerations. These factors could impact the regulatory landscape for LNG facilities and influence investor sentiment towards companies that are proactive in adopting environmentally responsible practices.
- Baker Hughes will supply Black & Veatch with turbomachinery equipment consisting of four electric-driven main refrigeration compressors, two electric-driven boil-off gas compressors and six centrifugal pumps
- Cedar LNG will be powered by renewable electricity to make it one of the lowest carbon intensity LNG facilities in the world
- Project is a key element of the Haisla Nation’s economic and social development, marking the first major industrial development in its territory it will own and in which it will participate
HOUSTON & LONDON, April 05, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Friday it was awarded an order from Black & Veatch, a global engineering, construction and consulting leader, to supply Cedar LNG in Canada with electric driven liquefaction technologies. The award was booked in the first quarter of 2024.
Baker Hughes will supply a range of turbomachinery equipment, including four electric-driven main refrigeration compressors, two electric-driven boil-off gas compressors and six centrifugal pumps. Powered by renewable electricity, Cedar LNG will be one of the lowest carbon intensity LNG facilities in the world.
The Cedar LNG project brings together the Haisla Nation and Pembina Pipeline Corporation (Pembina) to develop the Haisla Nation-led project. The project is a key element of the Haisla Nation’s economic and social development strategy and will further advance reconciliation by allowing the Haisla Nation, for the first time ever, to directly own and participate in a major industrial development in its territory. Today, the Haisla people are centered on Kitamaat Village. Home to approximately 700 of the 2,023+ Haisla membership, Kitamaat Village sits at the head of the Douglas Channel in British Columbia, Canada.
“Black & Veatch is committed to helping our clients and the communities they serve make meaningful progress on their decarbonization journey,” said Laszlo von Lazar, president of Black & Veatch’s Energy & Process Industries business. “The Cedar LNG project represents an important step toward reducing carbon emissions through lower-carbon LNG facilities that can supply customers looking to move away from more carbon intensive feedstocks. This is an important aspect of near-term decarbonization plans around the world, and Canada’s abundant natural gas supply means Cedar LNG is in a strong position to accelerate this phase of the energy transition. And our team is eager to take on this opportunity with our long-standing partner Baker Hughes.”
“This award is the latest important milestone for Baker Hughes in the LNG market, demonstrating the strength of our portfolio and our commitment to collaborating with industry partners while providing efficient and lower carbon solutions for the natural gas market,” said Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes. “Over the next decade, electrification will play a critical role in the energy transition, enabling further reduction of carbon emissions from natural gas.”
The award continues the positive demand momentum for Baker Hughes’ gas technology equipment portfolio following several major LNG orders throughout the past year.
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.
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