Baker Hughes, a GE company (NYSE: BHGE) announced Aug. 20 that it has been awarded a contract and granted notice to proceed on the construction of its comprehensive LNG technology solution for Venture Global LNG’s Calcasieu Pass project.
The final notice to proceed (FNTP) follows Venture Global’s Final Investment Decision and Financial Close for Calcasieu Pass and is part of the companies’ previously-announced supply agreement. The agreement includes BHGE’s highly-efficient and reliable modular liquefaction trains, and power generation and electrical distribution equipment for the Calcasieu Pass Project.
“By providing innovative LNG technology solutions to projects such as Calcasieu Pass, BHGE is continuing to help unlock the potential of natural gas. We are proud to be a strategic partner for such an innovative and important project for the U.S. LNG market,” said Rod Christie, BHGE president and CEO, Turbomachinery & Process Solutions. “As global energy demand continues to grow and with it an increasing focus on energy transition in the coming decades, we will see more adoption of gas solutions in the energy mix, making the availability, flexibility and cost of natural gas important factors in shaping the future of energy.”
Venture Global co-CEOs' Bob Pender and Mike Sabel jointly stated, “Our teams have been working successfully together for years engineering, designing and now fabricating our process system. Today’s announcement allows us to complete construction of our export facility and realize our commitment to deliver U.S.-produced, low-cost energy to the world. We look forward to continuing to execute alongside BHGE.”
Under the contract, BHGE will provide an LNG liquefaction train system (LTS) with 18 modularized compression trains across nine "blocks," for a total nameplate capacity of 10 million tonnes per annum (MTPA). The modularized system offers a “plug and play” approach that enables faster installation and lower construction and operational costs. These modules will be manufactured, assembled, tested and transported from BHGE’s state-of-the-art plants in Italy.
Additionally, BHGE will leverage advanced technologies from across its portfolio to deliver a comprehensive power island system (PIS) that includes power generation and electrical distribution equipment for the facility. Equipment deliveries are expected to begin in the second half of 2020. BHGE will also provide associated field support services to assist in the oversight, installation and commissioning of the supplied equipment. These are the first contracts awarded under the master equipment supply agreement between Venture Global LNG and BHGE for 60 MTPA of production capacity.
Recommended Reading
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
Association: Monthly Texas Upstream Jobs Show Most Growth in Decade
2024-04-22 - Since the COVID-19 pandemic, the oil and gas industry has added 39,500 upstream jobs in Texas, with take home pay averaging $124,000 in 2023.
Shipping Industry Urges UN to Protect Vessels After Iran Seizure
2024-04-19 - Merchant ships and seafarers are increasingly in peril at sea as attacks escalate in the Middle East.