Baker Hughes has been awarded an order by Bechtel to supply two main refrigerant compressors (MRCs) for Sempra Infrastructure’s Port Arthur LNG Phase 1 project in Jefferson County, Texas.
In total, Baker Hughes will supply four Frame 7 turbines with eight centrifugal compressors across two liquefaction trains and two electric motor driven compressors for the plant’s boosting services, the Europe-based energy technology company said on March 27 in a press release.
Baker Hughes’ gas technology will provide San Diego-based Sempra “operational flexibility, high availability and [a] lower emission footprint,” while the Frame 7 turbine will provide “energy efficiency, availability, reliability and maintainability,” Baker Hughes said.
Packaging of the turbine and compressor train and the manufacturing of the compressors and testing of the trains will take place at Baker Hughes’ facilities in Italy.
“Baker Hughes remains one of the best ways for equity investors to participate in solving the Energy Trilemma challenge,” Wells Fargo analysts Roger D. Read and Lauren Hendrix Walker wrote on March 27 in a research note. “New awards are positive for growth and visibility, but less so for margins (new equipment vs. service, maintenance, repair).”
Sempra Reaches FID on $13 Billion Port Arthur LNG Project, Closes JV
New liquefaction export infrastructure in the U.S. will help the country meet growing demand for LNG abroad, especially in Europe and Asia.
Phase 1 and beyond
On March 20, Sempra announced its 70%-owned subsidiary, Sempra Infrastructure Partners LP, reached a $13 billion final investment decision (FID) for the development, construction and operation of Port Arthur LNG Phase 1.
Port Arthur LNG Phase 1 is fully permitted and designed to include two natural gas liquefaction trains, two LNG storage tanks and associated facilities with a nameplate capacity of 13 million tonnes per annum [mtpa]. Port Arthur LNG Phase 2 is expected to have a similar offtake capacity as Phase 1.
Train 1 of Port Arthur LNG Phase 1 is expected to start commercial operation in 2027, while Train 2 is expected to start in 2028, according to Sempra.
“Baker Hughes continues to expect significant growth in new project sanctions in 2023 with elevated activity levels likely continuing into 2024,” the Wells Fargo analysts said. “This [Bechtel] project represents 13 mtpa of BKR’s expected 65 [mtpa]-115 mtpa of LNG projects reaching FID in 2023.”
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