Baker Hughes booked $1.2 billion in LNG equipment orders in Q1

Simonelli said during the first-quarter conference call on Friday that QatarEnergy LNG, a unit of state-owned LNG giant QatarEnergy, awarded Baker Hughes a “significant” contract for two “mega” trains on the North Field West project, representing 16 mtpa of capacity.

The scope includes six frame 9 gas turbines, 12 centrifugal compressors, and integrated power solutions utilizing three frame 6 gas turbines and three BRUSH power generation generators.

QatarEnergy is currently working on the giant North Field LNG expansion program, which includes the North Field South, North Field East, and North Field West projects.

Together, these will raise Qatar’s LNG production capacity in Ras Laffan from the current 77 mtpa to 142 mtpa in 2030.​

Earlier this year, QatarEnergy awarded the engineering, procurement, and construction (EPC) contract for the onshore LNG plant of the North Field West (NFW) project to a joint venture led by France’s Technip Energies.

In addition to the NFW contract, Baker Hughes booked a “significant” award to provide advanced compression and pumping technologies for QatarEnergy LNG’s large-scale carbon capture facility.

Simonelli said the scope includes six compression trains powered by variable speed electric motors, enabling the capture and transport of 4.1 million tons of CO2 annually.

“We are also seeing potential acceleration of LNG project FIDs in North America,” he said.

“Reflecting this momentum, we recently entered into a strategic agreement with ST LNG to provide critical gas compression and power generation solutions for their proposed 8.4 mtpa LNG export terminal offshore Texas,” Simonelli said.

Middle East conflict

QatarEnergy stopped producing LNG at its giant Ras Laffan complex on March 2 due to military attacks on its operating facilities. The LNG producer declared force majeure to its affected LNG buyers on March 4.

The company announced that it expects the damage to its Ras Laffan complex caused by missile strikes to cost about $20 billion a year in lost revenue and to take up to five years to repair, impacting supply to markets in Europe and Asia.

Simonelli noted during the call that disruptions across critical energy corridors, including the Strait of Hormuz, have tightened global oil and LNG balances, leading to sharp price increases.

He said the conflict has “significantly affected global LNG markets, with 20 percent of worldwide LNG capacity now offline, driving significant price volatility.”

“The recent infrastructure damage in the region and the effective closure of the Strait of Hormuz have materially constrained the LNG market’s ability to respond to growing demand, likely to result in a supply shortfall this year,” he said.

“Consequently, we are seeing increased sensitivity to price movements in key consuming regions,” Simonelli said.

“In Asia, higher LNG prices have led to fuel switching from natural gas to coal, which has helped moderate additional upward pressure on LNG prices,” he said.

“Meanwhile in Europe, the gas injection season has begun at a slower pace against relatively low storage levels. Currently, storage levels are only 30 percent of capacity – 6 percent below last year and 13 percent below the seasonal average,” Simonelli said.

He added that these dynamics “underscore the ongoing challenges and highlight the importance of energy security across global markets.”